Question: You are given the following information about two different loans: (a) A loan of $A is taken out today at j4 = 6%, repaid over

You are given the following information about two different loans:

(a) A loan of $A is taken out today at j4 = 6%, repaid over n-years with quarterly payments of $2793.28. The total amount of principal repaid in the first 5 years (first 20 payments) is $26,436.83. What is A?

(b) A loan of $P is taken out today at j12, to be repaid over n-months with monthly payments. You are given the following information: the principal repaid in the 32nd payment is $343.79, the principal repaid in the 41st payment is $376.00 and the outstanding balance after n - 1 monthly payments have been made is $576.77. What is the value of P?

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