Answer:
Monthly payments of student loan 25000 at fixed APR of 6% for 15 years is 264 units of money approximately
Solution:
Given that
Amount of student loan P = 25000
APR = R = 6%
Duration = T = 15 years
First let’s calculate interest on loan.
Interest = [tex]\frac{P \times R \times T}{100}[/tex] = [tex]\frac{25000 \times 6 \times 15}{100}[/tex] = 22500
Total amount needs to pay back = Loan amount + interest = 25000 + 22500 = 47500
Duration in which amount needs to be pay back = 15 years = 15 [tex]\times[/tex] 12 = 180 months
Monthly payment = Total amount needs to pay back / duration in months
= [tex]\frac{47500}{180}[/tex]
= 263.88.
Hence monthly payments of student loan 25000 at fixed APR of 6% for 15 years is 263.888 approx 264 units of money.
