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Dr. Nariman Mostafavi is a capable researcher at Drexel, though he has an addiction to borrowing...

Dr. Nariman Mostafavi is a capable researcher at Drexel, though he has an addiction to borrowing money thanks to a demanding family. 6 years ago he borrowed $6K, when the interest rates were 6.2%. Two years later he borrowed another $4K at 4.43% rate. Last year, he believed a deceiving TV commercial and borrowed another $10k at 16.5%. Now he wishes to consolidate his debt into a single 20-year loan with an annual, fixed 5% rate. If he starts making annual payments in 3 years, what is the amount of each payment? Also, draw the cash flow diagram. (Use formulas if you cannot find the interest rates in the tables).

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6000 6.20% 4000 443% 10000 16.50% 4757 11650 25015 28958.254 2.323.69 10000 (2,323.69) (2,323.69) After 3 years Annual payment 2 100.062 0.0443 0.165 A4(1+B4C4 =A5*(1+85) A6 (1+B6)AC6 -SUM(D4:D6) -D7(1+5%)A3 -PMT(596.20. D8) 4 6000 5 4000 6 10000 -6 6000 -

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