I have accumulated over a 4-year period a student loan of about $50,000. Now that I have graduated and landed a good-paying job, and wish pay off at least half of it in 5 years, what would my monthly payment be given a current rate of interest of 3.75% compounded monthly? would appreciate any help and thank you.

Guest Jun 10, 2017

1+0 Answers


Since we know 4 variables out of 5, will use this formula to give us the 5th unknown, which is the monthly payment:
Where P = The monthly payment
R = 3.75%. Will divide this by 12 to give us the monthly interest rate of 0.003125.
N = 5 years x 12 months = 60 months.
FV =$25,000 the balance of the loan after 5 years.
PV = $50,000 The Present Value of the loan. 
Solve for P:
29268.2 - 54.6331 P = 0

P = 535.72 - Your monthly payment. After 5 years you will still have a loan balance of $25,000.

Guest Jun 10, 2017
edited by Guest  Jun 10, 2017

7 Online Users

We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details