Jack has borrowed $$1,000,000$ from MQ Bank for $10$ years at an interest rate of j$2=4\mathrm{.}49\%.$ He will make $10$ annual repayments. According to the loan agreement, Jack's repayments will be $$89,000$ for the first two years followed by payments of with the amount of X per year for the remaining eight years. This loan needs to be fully repaid by the end of $10$ years.

$($b$)$ Assume that all annual repayments will be paid at the beginning of each year $($the first payment will be at the start of the first year$),$ what is the value of Jacks' annual payment amount X $($rounded to four decimal places$)?$

Question Answer

a$.$

$125151\mathrm{.}8015$

b$.$

$131110\mathrm{.}3077$

c$.$

$130771\mathrm{.}1174$

d$.$

$125415\mathrm{.}9228$