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Problem $7-18$

You have graduated from college but unfortunately have $$39,000$ in outstanding loans. The loans require payments of $$3,165$ per year, which covers interest and principal repayment $($that is$,$ the loan has the same basic features as a mortgage$).$ If the interest rate is $3$ percent, how long will it take you to repay the debt? Use Appendix D to answer the question. Round your answer up to the next whole number.

If the powers that be raise the rate to $6$ percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your answer up to the next whole number.eBook

Interest Factors for the Present Value of an Annuity of One Dollar