Question: Our cat, Fred, wants to purchase a new litter box. The cost is $100 and he'll finance it over 2 years at an annual rate

Our cat, Fred, wants to purchase a new litter box. The cost is $100 and he'll finance it over 2 years at an annual rate of 18% compounded monthly and to be repaid in 24 monthly payments.

(a) What is his monthly payment?

(b) At the time of the thirteenth payment, Fred decides to payoff the remainder of the loan. Using regular compound interest factors, determine the amount of this last payment.

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