tAt the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. Miranda paid off each loan by making constant monthly payments, starting with when she graduated. All of the loans were subsidized. What is the total lifetime cost for Miranda to pay off her 4 loans?

Question

amistre64 · Answer

total lifetime cost?  wouldnt that just be the total of all payments made?

amistre64 · Answer

each loan is a little different in that they have difference grace periods in which the interest builds up ... other than that

amistre64 · Answer

5500			
              	5500		
	                	5500	
			                        5500
5638.79	5603.77	5568.96	5534.37 ; starting year 5 balances

amistre64 · Answer

so, 
6 years to pay off the 1st loan
7 to pay off the 2nd
8 to pay off the 3rd
9 years to pay off the 4th

if im seeing this correctly

amistre64 · Answer

monthly payments would most likely be

97.49	85.95	77.31	70.62

the x6x12, x7x12, x8x12, x9x12  for total payments made

thats my idea

amistre64 · Answer

any options to compare with?

amistre64 · Answer

dunno how right it is but this is what excel helps me get to.

anonymous · Answer

thanks