Suppose you are paying off a loan, but all that you know about the loan is the following:

Suppose you are paying off a loan, but all that you know about the loan is the following: The loan was taken out exactly 2 years and 4 months ago The balance is now $217,595.52 The regular monthly repayments are made in arrears (i.e. at the end of each month) and are equal to $1,947.45, which will exactly amortise (pay off) the loan at some point in the future The next payment is due in exactly one month's time > The loan balance will be $183,787.19 in exactly three year's time from now (a) Calculate the applicable interest rate on this loan (express it as an annual effective rate). Show all working, and give your answer to 3 significant figures. (4 marks) (b) Calculate the initial size of the loan when the loan is first taken out. Show all working, and give your answer to the nearest dollar. (4 marks) (c) Calculate the original term of the loan (that is, the length of time that the loan was planned to be paid off, when the loan was first issued). Show all working. (3 marks) Suppose you are paying off a loan, but all that you know about the loan is the following: The loan was taken out exactly 2 years and 4 months ago The balance is now $217,595.52 The regular monthly repayments are made in arrears (i.e. at the end of each month) and are equal to $1,947.45, which will exactly amortise (pay off) the loan at some point in the future The next payment is due in exactly one month's time > The loan balance will be $183,787.19 in exactly three year's time from now (a) Calculate the applicable interest rate on this loan (express it as an annual effective rate). Show all working, and give your answer to 3 significant figures. (4 marks) (b) Calculate the initial size of the loan when the loan is first taken out. Show all working, and give your answer to the nearest dollar. (4 marks) (c) Calculate the original term of the loan (that is, the length of time that the loan was planned to be paid off, when the loan was first issued). Show all working