Devi buys some furniture. She has a choice between paying $700.00 in cash or making monthly payments of $25.00 (at the start of each period) until the furniture is paid for. The interest rate is 1.750% compounded bi-weekly.

a) How many payments will Devi have to make if the last payment is a drop payment?

b) What is the amount of the drop payment?

c) What are your answers to a) and b) if she makes no payments for the first year, and then makes monthly payments (at the start of each period).