You have just graduated from university. Your family took loans to pay for your educational expenses totaling $95,000. You have to repay this loan that requires you to pay interest @ 9 percent. Payments will be made monthly and the loans must be repaid within 15 years.

You want to determine how you are going to repay this loan. Your first payment is due in one month.

(a)If you decide to repay the loans over the maximum period - that is 15 years - how large the monthly payment should be?

(b)If you decide to repay the loans in 10 years, how large the monthly payment should be?

(c)If you pay $1,500 per month, how long will it take to repay the loans?