Question: Your boss has given you some grading to do. A new hire was asked to solve the following problem: J.K. Rose has borrowed $80,000 for

Your boss has given you some grading to do.

A new hire was asked to solve the following problem: J.K. Rose has borrowed $80,000 for 10 years at 5% interest. Find the amount of the payment. 

The new hire provided the following answer: 8400.

a) Evaluate the payment estimate. Explain why it is correct (or not). 

b) The new hire is assigned to you. What are your concerns (if any) and why?

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