Lowlife Company defaulted on a $120,000 loan that was due on December 31, 2016. The bank has agreed to allow Lowlife to repay the $120,000 by making a series of equal annual payments beginning on December 31, 2017. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1.Calculate the required annual payment if the banks interest rate is 10% and four payments are to be made

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2.Calculate the required annual payment if the banks interest rate is 8% and five payments are to be made.

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3.if the banks interest rate is 10%, how many annual payments of $37,856 would be required to repay the debt?

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4.If three payments of $48,254 are to be made, what interest rate is the bank charging Lowlife?

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