The Bank will loan you $12,250 for three years to buy a computer. The loan must be repaid in 36 equal monthly payments. The annual interest rate on the loan is 12 percent of the unpaid balance. How large are the monthly payments?

Dana plans to borrow $1,500,000 for home improvement. The loan is to be repaid in five equal payments at the end of each of the next 5 years. The lender charges an interest rate of 6.25%.

1. What are the equal payments that must be paid every year for the next five years?