Problem $7-18$

You have graduated from college but unfortunately have $$34,000$ in outstanding loans. The loans require payments of $$3,075$ per year, which covers interest and

principal repayment $($that is$,$ the loan has the same basic features as a mortgage$).$ If the interest rate is $5$ percent, how long will it take you to repay the debt? Use

Appendix D to answer the question. Round your answer up to the next whole number.

If the powers that be raise the rate to $8$ percent, how many additional years will be required to retire the loans? Use Appendix D to answer the question. Round your

answer up to the next whole number.