A loan at rate i^12=.12 is repaid with 120 monthly payments starting one month after the loan. The amount of the first payment is 600 and each subsequent payment is 5 larger than the previous payment. Find the original amount of the loan. Find PR1 and use the result of

to show that PRt - PR1(1.01)^t-1)+5s

(20 points) (3.1.8) A loan at rate i(12) = 0.12 is repaid with 120 monthly payments starting one month after the loan. The amount of the first payment is 600 and each subsequent payment is 5 larger than the previous payment. (5)Find The original amount of the loan. (5)Find PRI and use the result of Excercise 3.1.7 to show that PR PR (1.01)-1 + 557-1 (5+5)Find OB&o prospectively, retrospectively, and by verifying that 0B60 = L-E, PRk, using the form of PR found earlier in this excercise