Jack has borrowed $$1,000,000$ from MQ Bank for $10$ years at an interest rate of j$2=4\mathrm{.}22\%.$ He will make $10$ annual repayments. According to the loan agreement, Jack's repayments will be $$91,000$ for the first two years followed by payments of with the amount of X per year for the remaining eight years. This loan needs to be fully repaid by the end of $10$ years.

$($a$)$ Assume that all annual repayments will be paid at the end of each year $($the first payment will be at the end of the first year$),$ what is the value of Jacks' annual payment amount X $($rounded to four decimal places$)?$

Question $7$Answer

a$.$

$135323\mathrm{.}4401$

b$.$

$124480\mathrm{.}0989$

c$.$

$124236\mathrm{.}3325$

d$.$

$134943\mathrm{.}1240$