Suppose you have taken out $25,000 in student loans. The repayment will take the form of equal monthly payments for the next 10 years. The interest rate on your student loans is 5%. Which one of the following statements is true assuming that you repay the loan as agreed?
The total interest paid is $12,500.00
The monthly payment is $1,253.59
The first principal payment is $2,083.33
The total amount paid over 10 years is about $31,819.65