Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a ​$18000 loan given that the lender requires her to make annual​ end-of-year installment payments of ​$3906. a. If the interest rate on the loan is ​11%, how long will it take for her to repay the loan​ fully? b. How long will it take if the interest rate is 8​%? c. How long will it take if she has to pay 14​% annual​ interest? d. Reviewing your answers in parts a​, b​, and c​, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.