You applied for the following student load to support your college study: Before graduation: You will receive $8000 /per year from the beginning of each school year for 4 years; You will graduate after 4 years; Interest rate when you are at college will be 1% annually; After graduation: You need to pay back all money with 60 month with constant payment amount every month; First payment should be received at the end of first month after graduation; Interest rate during this period will be 6% per year. Calculate the monthly payment amount. Solution: Before Graduation: 1. The total amount of money received over 4 years is equivalent present worth of P=$ - 2. This is equivalent future worth upon graduation of F=$ After Graduation: 1. Effective interest rate per compounding period is i= %; 2. For constant payment plan, monthly payment amount will be $