AI Larson asked a bank to lend him money on January 1, based on the following repayment plan: the first payment would be $2 on February 28, with sub- sequent monthly payments increasing by $2 a month on an arithmetic gradient. (The March 31 payment would be $4; the April30 payment would be $6, etc.) The payments are to continue for 11 years, making a total of 132 payments.
(a) Compute the total amount of money AI will pay the bank, based on the proposed repayment plan
(b) If the bank charges interest at 12% nominal per year, compounded monthly, how much would it be willing to lend AI on the proposed repayment plan?