1a. Lets suppose that you will have $20,000 debt after graduation from college. Lets assume that you will save $500 each month to pay your student debt. Find the minimum number of months you need to pay back your loan. The interest rate is 3% compounding quarterly.

1b. Now lets suppose that you will borrow money from another bank right after your graduation and pay back your student debt. This bank, however, gives you money with maximum allowable payback period of 5 years. Do you accept the offer? The interest rate is 0.5% compounding monthly.