You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require monthly payments of $297.08 (or $3,565 per year), which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage).

If the interest rate is 3 percent, how long will it take you to repay the debt? Use Appendix D to answer the question. Round your answer up to the next whole number.

If the powers that be raise the rate to 5 percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your answer up to the next whole number.

Interest Factors for the Present Value of an Annuity of One Dollar Time Period year 1 2 3 4 5 1% 2% 3% 4% 5% 6% 7% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 1.970 1.942 1913 1.886 1.859 1.833 1.808 1.783 2.9412.884 2.829 2.775 2.723 2.673 2624 2577 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 4.853 4.713 4580 4.452 4.329 4.212 4.100 3.993 9% 10% 12% 14% 16% 18% 20% 24% 28% 22% 25% 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.759 1.736 1.690 1647 1.605 1.566 1.528 1.457 1.392 1332 1276 2.531 2.487 2402 2.322 2.246 2.174 2106 1981 1.868 1766 1674 3.240 3.170 3.037 2.914 2.798 2690 2.589 2.404 2.241 2096 1966 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 6 8 5.795 5.601 5.417 .728 6.472 6.230 7.652 7325 7.OZO .566 8.162 7.786 9.471 8.983 8.530 5.242 5.076 4.9174.766 6.002 5.786 5.582 5.389 6.733 6.463 6.210 5.971 7.435 7.108 6.802 6.515 8.111 7722 7360 7.024 4.623 4.486 4.355 41113.889 3.685 3.498 3326 3.020 2759 2.534 2.399 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 5.747 5535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 6.247 5.985 5.759 5.328 4.946 4,607 4.303 4.031 3.566 3.184 2.868 2.603 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 9 8 10 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 12.499 7.139 6.805 6.695 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7943 7.5367.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7487 7.103 6.424 5.842 5 342 4.910 4. 5333912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.6113.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4,675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017 .250 1917.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8950 8.365 7.366 2018.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.265 6.373 6.467 6.550 6.623 5.669 5.749 5.818 5.877 5.929 5.162 4.730 4,003 3.503 3088 2.758 5.222 4.775 4.059 3.518 3097 2.763 5.273 4.812 4.080 3.529 3.104 2.767 5.316 4,844 4.0973.539 3.109 2.770 5.353 4.870 4.110 3.546 3113 2.772 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778