An engineering student graduates with student loans which is having the amount of $37900 that have a repayment APR of 6.7%.
1. Discuss how much will the annual payments be if they intend to pay off the loans in 12 years?
The student decides that they won't be able to make this large of a payment immediately upon graduating. Instead they decide that they will start with a lower payment, but increase their annual payments by 9.3% per year, but still will pay off the loan in 12 years.
2. Explain what will their first annual payment be?
3. Discuss what will their last annual payment be?