Answered

Select the correct answer.
After four years of college, Erica has to start paying off all her student loans. Her first payment is due at the end of this month. Her bank told her
that she has 10 years to pay off all of her loans, and that starting this month the loans will be compounded monthly at a fixed annual rate of
9.4%.
Erica currently has a total of $29.158.00 in student loans. Using the formula, what is Erica's approximate monthly payment?
Fpli)
P =
1- (1 + i)-
ОА
OB
Erica's approximate monthly payment will be $370.39.
Erica's approximate monthly payment will be $254.94.
Erica's approximate monthly payment will be $375.70.
Erica's approximate monthly payment will be $2.740.10.
Oc.
D.

Answer :

Answer:

its $375.70

Step-by-step explanation:

i guessed and got it right. good luck guys. love u. remeber to eat n drink water and try to spend some time outside if you can! i know its hard rn but we can do it! im proud of u all

The value of Erica's approximate monthly payment is $375.70. The correct option is C .

What is the meaning of Rate of Interest  ?

Rate of Interest is the rate at which a loan is borrowed or the rate at which an investment gives return .

It is given that

Student Loan Total =  $29,158

Rate of Interest = 9.4 %

Time Period = 10 years

The monthly payment is given by

[tex]\rm \dfrac{F p(i) }{ ( 1 - ( 1 + i )^{-n})}[/tex]

Substituting the values in the equation

[tex]\rm = \dfrac{29158* (0.094/12) }{ ( 1 - ( 1 + (0.094/12) )^{-12*10})}[/tex]

= $ 375.70

Therefore,The value of Erica's approximate monthly payment is $375.70. The correct option is C.

To know more about Rate of Interest

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