1).

Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $17,000 at a rate of 4.4%/year compounded monthly. Her bank is now charging 6.2%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.)

interest paid to manufacturer	$
interest paid to bank	$
savings	$

2). Olivia plans to secure a 5-year balloon mortgage of $210,000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a 30-year conventional mortgage at the rate of 3%/year compounded monthly. At the end of the 5 years, Olivia is required to pay the balance owed (the "balloon" payment). What will be her monthly payment for the first 5 years, and what will be her balloon payment? (Round your answers to the nearest cent.)

monthly payment	$
balloon payment	$

3). George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5 years ago. The amount of the loan was $400,000 for a term of 30 years, with interest at the rate of 5%/year compounded monthly. Currently, the interest rate for his ARM is 4.5%/year compounded monthly, and George's monthly payments are due to be reset. What will be the new monthly payment? (Round your answer to the nearest cent.) $ =