A Wartburg engineering student graduates with student loans in the amount of $41400 that have a repayment APR of 7.66%. (a) How much will the annual payments be if they intend to pay off the loans in 14 years? (b) What would the annual payments be if they decide to pay them off in 24 years instead? Solution Annual Instalments for 14 years B. 24 YRAR .

1. A Wartburg engineering student graduates with student loans in the amount of $41400 that have
a repayment APR of 7.66%.
(a) How much will the annual payments be if they intend to pay off the loans in 14 years?
(b) What would the annual payments be if they decide to pay them off in 24 years instead?
Solution
Annual Instalments for 14 years
B. 24 YRAR
Year Instalment
1 $ 4,923.00
2 $ 4,923.00
3 $ 4,923.00
4 $ 4,923.00
5 $ 4,923.00
6 $ 4,923.00
7 $ 4,923.00
8 $ 4,923.00
9 $ 4,923.00
10 $ 4,923.00
11 $ 4,923.00
12 $ 4,923.00
13 $ 4,923.00
14 $ 4,923.00