A solar energy system is to be paid for with a loan in the amount of $2700. The interest rate on the loan is 10.5% per year and the period is 8 years. The market discount rate is 9.5% per year.
a Calculate the annual payment to the lender.
b Calculate the monthly payment for the same loan (assuming that i = 10.5/12 per month compounded monthly).
c What is the present worth of the interest payments on the loan of part a?