A student with a $33,500 student loan is offered two payment plans to repay their debt.
Plan 1: Monthly payment of $361.91 over a period of 10 years, which corresponds to a compound interest rate of 5.4% compounded monthly.
To calculate the total amount paid under Plan 1, we need to find the total number of payments made over 10 years and multiply it by the monthly payment amount.
Total number of payments = 10 years * 12 months/year = 120 payments
Total amount paid under Plan 1 = Monthly payment * Total number of payments
= $361.91 * 120
= $43,429.20
Therefore, under Plan 1, the student will pay a total of $43,429.20 to repay their student loan.
Now let's consider Plan 2. Please provide the details of Plan 2, such as the monthly payment and the interest rate.
monthly payment is 473.49
rate of interest 5.0