You take out $50,000 for loans during your college career. you must pay it back with 7% apr for 20 years, making monthly payments. calculate the minimum monthly payment needed to do this.

The monthly payment for the loan amount for 20 years is $806.167

Step-by-step explanation:

The principal loan amount= $ 50,000

The rate of interest = 7 %

the time period of loan = 20 years = 20 × 12 = 240 months

let the amount after 20 years = $ A

From Compounded method

Amount = Principal ×

or, A = 50,000 ×

or, A = 50,000 ×

Or, A = 50,000 × 3.8696

∴ Amount = $ 193,480

So, The amount after 20 years = $ 193,480

The monthly payment amount = $ = $ 806.167

Hence The monthly payment for the loan amount for 20 years is $806.167 Answer

45

step-by-step explanation: