Problem
Suppose you graduate with a debt of $42,000 that you or someone must repay. One option is to pay off the debt in constant amounts at the beginning of each month over the next 10 years at a nominal annual interest rate of 10%.
(a) What is the constant beginning-of-month payment?
(b) Of the first payment, what is the interest and the principal paid?
(c) Of the last payment, what is the interest and the principal paid? Contributed by D. P. Loucks, Cornell University.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.