3. [2 points] Consider a fixed payment loan of $55,500 that has 15 years to maturity, with annual FP of $5250, and i=5%.

a. Whatis the PV of this loan? SET UP the problem only.

b. What would have been the impact on FP if the borrower had to pay higher interest rates (=6%), yet still wanted to borrow $55,500 and repay in 15 years? Discuss only. Do not calculate.

This is one question with two different parts please read and answer them correctly thankyou

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