What is the quarterly interest rate on the loan

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Reference no: EM131449134

1. Allysha just borrowed 38,200 dollars. She plans to repay this loan by making a special payment of 7,800 dollars in 3 years and by making regular annual payments of 6,600 dollars per year until the loan is paid off. If the interest rate on the loan is 5.15 percent per year and she makes her first regular annual payment of 6,600 dollars in one year, then how many regular annual payments of 6,600 dollars must Allysha make? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

2. Celeste just borrowed 37,100 dollars. She plans to repay this loan by making equal quarterly payments of 2,422.42 dollars for 17 quarters. If she makes her first quarterly payment later today, then what is the quarterly interest rate on the loan? Answer as a quarterly rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131449134

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