You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% annual compound interest.
a) Solve for the payment size.
b) What is the payment size when interest is 8% compounded monthly, and monthly payments are made over 6 years?
c) What is the payment size when interest is 8% compounded semiannually, and annual payments are made over 6 years?
d) What is the payment size when the first payment is not made until 10 years after receipt of the $42,000?