Question: Conrad has two loans outstanding, which he can repay at any time. He has just made the eleventh monthly payment on an $8500 loan at

Conrad has two loans outstanding, which he can repay at any time. He has just made the eleventh monthly payment on an $8500 loan at 10.5% compounded monthly for a three-year term. The twenty-second monthly payment of $313.69 was also made today on the second loan, which has a five-year term and an interest rate of 9.5% compounded semiannually. Conrad is finding the total monthly payments too high, and interest rates on similar loans are now down to 8.25% compounded monthly. He wishes to reduce his monthly cash outflow by obtaining a debt consolidation loan just sufficient to pay off the balances on the two loans. What would his monthly payment be on a five-year term loan at the new rate?

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