Time to repay installment loanPersonal Finance ProblemMia Salto wishes to determine how long it will take to repay a $14,000

loan given that the lender requires her to make annual end-of-year installment payments of $2,450.

a.If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully?

b.How long will it take if the interest rate is 9%?

c.How long will it take if she has to pay 15% annual interest?

d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.

Question content area bottom

Part 1

a. If Mia can borrow at an annual interest rate of 12%, the amount of time it will take for her to repay the loan fully is enter your response here

years.----------(Round to two decimal places.)

Part 2

b.If Mia can borrow at an annual interest rate of 9%, the amount of time it will take for her to repay the loan fully is enter your response here years.(Round to two decimal places.)

Part 3

c. If Mia can borrow at an annual interest rate of 15%,the amount of time it will take for her to repay the loan fully isenter your response here years.------------------(Round to two decimal places.)

Part 4

d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully. (Select the best answer below.)

A.

The higher the interest rate, the greater the number of time periods needed to repay the loan fully.

B.

The higher the interest rate, the lower the number of time periods needed to repay the loan fully.

C.

The interest rate does not affect how long it will take to repay the loan.

D.

The lower the interest rate, the greater the number of time periods needed to repay the loan fully.