1. 2 pts. Fan Liu buys a car with a price tag of $20,000. The transaction includes a discount of $1,000 from the stated price, and an old car is traded in for an additional $4,000 price reduction. Given that payments are made every two months (bi-monthly; 6 payments each year) over the next 4 years, with an annual interest rate of 6%, what is the required payment, assuming that they start 2 months from the transaction date?

a. $706 b. $699 c. $625 d. $556

e. none of the above Your amount: _______________________________