three nephews are trying to see what they can do to change the amount of money they owe in loans from university. All three of them owe about $20,000 right now.
Kenny has graduated university and is now in the military. He is paying off his debt at the end of each month by paying $300.
His younger brother, Adam, just graduated from undergrad and is now in grad school. So, his previous loans are put off for two years. BUt, he is working in the summers and other jobs while attending school. He plans to save as much money as he can and not pay off anything until he has to (in two years). Whatever interest he can make on the saved money before thenn he can give to his mother to say thank you for all her support. He had $6,500 saved from his work and playing gigs with his band this summer and he figures he can save $180 a month.
Their youngest brother Aaron is in his Junior year in university. He has a job as a Dorm Director at the university which allows him to pay his bills so he does not need to borrow any more money. He will satart paying the $20,000 he owes in two years (24 months from now). He plans to start by paying using $5000 from his savings in the first month and then paying $250 each month after that.
If Kenny starts paying off his loan now and Adam starts saving money now. Will Kenny ever owe the same amount that Adam has saved? If so, how much will that be? If it is not possible, explain why?
Will Aaron ever owe less than either of his brothers? Explain how you know.
IF they keep at this current plan, when will Adam have saved enough money to pay off his whole loan? When will Kenny be finished? When will Aaron be finished?
If the boys decided to work together using their savings and monthly payments at once, (so all pay off Kenny's loan, then help with Adam's loan, then finish up with Aaron's loan), will they pay off the loans faster, slower, or in the same amount of time? Explain your reasoning