To calculate Jeremy's monthly payment for his student loan, we can use the formula for monthly loan payments:
Monthly Payment = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Where:
- P = Principal amount (amount owed) = $14,069.80
- r = Monthly interest rate = Annual Percentage Rate (APR) / 12 months = 6.94% / 12 = 0.0057833
- n = Total number of payments = 10 years * 12 months = 120 months
Now, plug these values into the formula:
Monthly Payment = [14069.80 * 0.0057833 * (1 + 0.0057833)^120] / [(1 + 0.0057833)^120 - 1]
= $162.92/month
