Plans to repay this loan by making special payment

Assignment Help Financial Management

Reference no: EM131965858

1. Grace just borrowed 215,539 dollars. She plans to repay this loan by making a special payment of 18,778 dollars in 7 years and by making regular annual payments of 26,209 dollars per year until the loan is paid off. If the interest rate on the loan is 4.95 percent per year and she makes her first regular annual payment of 26,209 dollars immediately, then how many regular annual payments of 26,209 dollars must Grace make? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

2. Allysha just borrowed 41,100 dollars. She plans to repay this loan by making a special payment of 5,600 dollars in 4 years and by making regular annual payments of 7,200 dollars per year until the loan is paid off. If the interest rate on the loan is 6.71 percent per year and she makes her first regular annual payment of 7,200 dollars in one year, then how many regular annual payments of 7,200 dollars must Allysha make? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

Solve and show your work using the TI-84 financial calculator

Reference no: EM131965858

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