You applied for the following student load to support your college study: Before graduation: - You will receive $5500 /per year from the beginning of each school year for 4 years; - You will graduate after 4 years; - Interest rate when you are at college will be 1% annually; After graduation: - You need to pay back all money with 60 month with constant payment amount every month; - First payment should be received at the end of first month after graduation; - Interest rate during this period will be 6% per year. Calculate the monthly payment amount. Solution: Before Graduation: 1. The total amount of money received over 4 years is equivalent present worth of P= 2. This is equivalent to future worth upon graduation of F=$ After Graduation: 1. Effective interest rate per compounding period is i= 2. For constant payment plan, monthly payment amount will be $