1. Kendall borrows $100,000 on Jan 1, 1993 to be repaid in 12 annual installments at an effective annual rate of interest of 8%. The first payment is due on Jan 1, 1994. Instead of annual payments she decides to make monthly payments equal to one-twelfth the annual payment beginning on Feb 1, 1993. Determine how many months will be needed to pay off the loan.
2. Tom has served in the Navy for 21 years and plans to retire sometime in the future. Every three years he has received a re-enlistment bonus and deposited a certain dollar amount, X, in an account for when he retires. After making his current deposit, the value of his account is $180,176. Assuming an annual effective interest rate of 9%, what were his tri-annual deposits?