1 Assume you borrowed $40,000 to buy a new car at 3.49% interest to be paid back in monthly installments over the next 6 years. a) How much would your monthly payment be? b) How much interest expense would be included in your first payment? c) How much interest expense would be included in your last payment? d) How much would your payment be if your interest rate was 9.9%? 2 Assume you borrowed $275,000 for a home, at 5.5% interest for 30 years, to be paid back in monthly installments over the next 30 years? a) How much would your monthly payment be? b) How much interest would you pay over the 30 years in total? c) If you pay back the loan in equal installments over the next 15 years instead of 30 years how much would your monthly payment be? d) If you pay back the loan in equal installments over the next 15 years instead of 30 years how much interest you pay over the 15 years? 3 Select a loan amount, interest rate, and number of months to pay back and answer the following questions. Loan: Rate: Months a) What is the monthly payment amount? b) How much interest expense would be included in your first payment? c) How much interest expense would be included in your last payment? d) How much interest would you pay in total over the term of the loan? iswer