What is the monthly interest rate being charged in scenario


Problem

The average college graduate owes $22,500 in loans incurred over his/her college career. Now that it is so difficult to land a job after graduation, an option for the graduate seeking relief is to stretch the loan over 20 years (with the bank's approval, of course) instead of repaying the loan over the normal 10 years. Doubling the repayment period of the loan slices 29% off the monthly payments. However, this action also increases the total amount of interest repaid over the life of the loan by 121%! What is the monthly interest rate being charged in this scenario?

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.

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Microeconomics: What is the monthly interest rate being charged in scenario
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