A loan is $67,000 is being repaid with monthly payments. The interest rate for the first 4 years is i(12) = 7.2% and the monthly payment is $780. After 4 years, the loan is refinanced at i(12) = 5.76% and the monthly payment drops to $730. Then after 3 more years, the loan is refinanced at i(12) = 8.40% and the monthly payment rises to $800. After 9 years, the loan is refinanced at i(12) = 6% and is to be paid off in 2 years, with payments that start at $R and increase by 2% every month. What is the value of R (which is the payment due at the end of the 109th month)? (7 marks)

2. A loan is $67,000 is being repaid with monthly payments. The interest rate for the first 4 years is (12) = 7.2% and the monthly payment is $780. After 4 years, the loan is refinanced at i(12) = 5.76% and the monthly payment drops to $730. Then after 3 more years, the loan is refinanced at i(12) = 8.40% and the monthly payment rises to $800. After 9 years, the loan is refinanced at i(12) = 6% and is to be paid off in 2 years, with payments that start at $R and increase by 2% every month. What is the value of R (which is the payment due at the end of the 109th month)? (7 marks)