### Amortization schedule under the standard plan

Assignment Help Financial Management
##### Reference no: EM132014607

Student borrowers now have more options to choose from when selecting repayment plans. The ‘Standard’ plan repays the loan up to 10 years with equal monthly payments. The ‘Extended’ plan allows up to 25 years to repay the loan. Assume that a student borrows \$55,000 at 4.66% interest compounded monthly. (Source: U.S. Ministry of Education)

Construct an Amortization Schedule under the ‘Standard’ plan over 10 years

((a)

(i) Find the monthly payment

(ii) What is the total interest paid over the 10 years

(iii) How much of the 5th payment is used to reduce the loan?

(b) Construct an Amortization Schedule under the ‘Extended’ plan over 25 years

(i) Find the monthly payment

(ii) What is the total interest paid over the 25 years

(iii) How much of the 5th payment is used to reduce the loan?

### Write a Review

#### Based on purchasing power parity

The U. S. experienced an inflation rate of 4 percent last year while Spain's inflation last year was 2 percent. Based on purchasing power parity, the euro will:

#### Benefit costs compared with the current arrangement

You are a small employer who has believed in providing top-notch benefits to your 250 employees for many years. For the last several years you have provided a wide choice of health benefits through a cafeteria plan and made very generous contribution..

#### What was your total nominal rate of return on investment

Suppose you bought a bond with an annual coupon rate of 4.2 percent one year ago for \$900. The bond sells for \$950 today. Assuming a \$1,000 face value, what was your total dollar return on this investment over the past year? What was your total nomin..

#### The burden of proof in criminal trial

The burden of proof in a criminal trial is?

#### The university as intended third-party beneficiaries

Wichita State University leased an airplane to fly it's football team. The lease provided that the university would provide liability insurance to cover an deaths or injuries from the operation of the plane. No such insurance was brought. The plane l..

#### Calculate the weighted cost of capital

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisio..

#### What is the present value of the cash flow stream

You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company ..

#### What is equivalent annual annuity for each plane

Shao Airlines is considering the purchase of two alternative planes. What is the equivalent annual annuity for each plane?

#### What are the advantages to each type of stock

Jamie Lee’s father suggested that they purchase stock in a company that he has held shares in for decades. What are the advantages to each type of stock?

#### What is npv to crisps of offering credit to bigbag

Based on this information, what is the NPV to Crisps of offering credit to BigBag?

#### Is this identical to john buying apple call option from mary

Suppose John short sells Apple put option to Mary. Is this identical to John buying Apple call option from Mary? Please explain in detail why they are the same or different.

#### What rate of return is fred earning on this investment

The stock has no expiration date. What rate of return is Fred earning on this investment?

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!