You agreed to pay your brother back for the $12,000 loan he extended you for your education. You both agree that a fair effective annual rate of interest is 11% percent.

Required:

If you will repay the loan in a single lump sum, how much do you need to repay at the end of:

a. 1 year

b. 3 years

c. 6 years

d. 12 years

e. 15 years