Find the revised annual payment

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Reference no: EM131070489

Seven years go, Jean took out a 20- year 30000 loan at 8% effective on which she was making annual payments, with the first payment due one year after the loan was taken out. She now wishes to make a lump-sum payment of 6000, and then pay off the loan in 5 more years. Find the revised annual payment under each of the following situations:

a) the lender is satisfied with earning 8% effective.

b) the lender is satisfied with 8% effective for the past 7 years, but insists on an 11% yield for the next 5 years.

c) the lender insists on an 11% yield for the entire life of the loan.

Reference no: EM131070489

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