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Suppose you have three personal loans outstanding to your friend Andrana. A payment of $2000 is due today, a $1000 payment is due one year
Suppose you have three personal loans outstanding to your friend Andrana. A payment of $2000 is due today, a $1000 payment is due one year from now, and a $1500 payment is due three years from now. You would like to consolidate the three loans into one, with 36 equal monthly payments, beginning one month from today. Assume the agreed effective annual rate is 5%. How large will the new monthly payments be?
(A) $126.59
(B) $127.11
(C) $129.05
(D) $134.87
(E) $144.70
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