A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,200 per month for the next three years and…

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,200 per month for the next three years and then $2,200 per month for the two years after that. If the bank is charging customers 7.00 percent APR, how much would it be willing to lend the business owner?