2. (35 points) Suppose you visited a bank to get a loan in the amount of...

          

 

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2. (35 points) Suppose you visited a bank to get a loan in the amount of $10,000. You negotiated the terms of the loan with the bank and the re-payment plan is finalized as follows: Effective Monthly Interest Rate = 1.25% Payments start at the end of first month and each monthly payment is $G more than the previous payment. First Payment Amount = $500 a) Draw the cash flow diagram for this loan payment plan. b) What should the value of "G" be in order to re-pay the loan at the end of 12 months? 2. (35 points) Suppose you visited a bank to get a loan in the amount of $10,000. You negotiated the terms of the loan with the bank and the re-payment plan is finalized as follows: Effective Monthly Interest Rate = 1.25% Payments start at the end of first month and each monthly payment is $G more than the previous payment. First Payment Amount = $500 a) Draw the cash flow diagram for this loan payment plan. b) What should the value of "G" be in order to re-pay the loan at the end of 12 months?