1. a. What is the monthly payment for a car if $16,000 is financed for 5 years at 4.8% annual interest, compounded monthly? 2. 3. 4. b. a. b. a. b. a. b. 5. If the same car is financed for 4 years at 4.5% annual interest, which loan will have the lower total interest cost over the life of the loan, the 4 year loan or the 5 year loan? Hint: you do not need to do any math to answer this question. If you deposit $6,000 into an account each year for 30 years, how much will you have after 30 years if the account earns 3% annual compound interest after taxes? After the 30 years of saving, how much can you withdraw from this account each year for 20 years to leave a zero balance assuming the after-tax interest rate on the account stays 3%? If you deposit $300 into a savings account at the end of each quarter for 4 years, how much will you have in the account after 4 years if the account earns 2% annual interest, compounded quarterly? What is the dollar amount of the difference between the two account balances if you deposit the $300 into the account at the beginning of each quarter instead of at the end of the quarter? If you have budgeted $350 a month for a payment on new furniture, how much can you spend on furniture today, assuming the terms of the loan are 3 years and 12% annual interest rate, compounded monthly? How much is paid to interest over the life of the loan? Suppose you have some money set aside to put into some type of financial investment today and have narrowed your choices down to two options. Option A: $1,000 today pays $2,000 in 5 years a. Option B: $1,000 today pays $300 in 3 years plus $1,600 in 5 years What is the Net Present each option assuming the interest rate is 8% in each case. b. Ceteris paribus, which option is best, option A or option B?