suppose a graduate student receives a non-subsidized student loan of $12,000 for each of the 4 years the student pursues a phd. if the annual interest rate is 4% and the student has a 10-year repayment program, what are the student's monthly payments on the loans after graduation? (round your answer to the nearest cent.)
$

Monthly Payment $ 515.92

Step-by-step explanation:

First we calculate the value of the loan after the four years:

We will calcualte that using the future value of an annuity of $12,000 for 4 years at 4%

C12000

time4

rate    0.04

FV$50,957.57

Now we have to calculate the cuota of a 10 years loan with this value as the principal.

PV  $50,957.57

time10 years x 12 months per year = 120

rate4% per year / 12 months = monthly rate =  0.00333

C$ 515.92

$650 per month plus utilities

step-by-step explanation:

just based on the info you gave, it would seem more cost effective to rent at $650 per month plus utilities.   if utilities are, in fact, $150 per month, your monthly living costs would be $800 as opposed to the other option of $825.