A student has three semesters to complete before graduation, when they find out their student aid has run out.
The student has the option of the school's installment plan of $800 per month for the last three semesters, with an enrollment fee of $50 or take out a $12,000 loan with Sallie Mae for 36 months at 8.625%. What is the amount financed, the monthly payment, and the total payment and the end of the term of the loan?
Which is the better option - the installment plan or the Sallie Mae loan? (Show step by step how you arrived at your results)