Mike French wishes to determine how long it will take to repay a loan with initial proceeds of $14,000 where annual end-of year instalment payments of $2,450 are required.
a. How long will it take for him to repay the loan fully If Mike can borrow at annual rates of interest at: i. 12% ii. 9% iii. 15%
b. Reviewing your answers to the above part, describe the general relationship between the interest rate and the amount of time it will take Mike to repay the loan fully.