1. Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 9% APR. How much of the first month's payment is interest? (Round your answer to the nearest cent.) $

2. In one instance, a financial institution loaned you $70,000 for two years at an APR of 9.75% for which you must make monthly payments. In a second instance, you loaned a financial institution $70,000 for two years at an APR of 9.75% compounded monthly. What is the difference in the amount of interest paid? (Round your answer to the nearest cent.) $

3. When interest rates are low, some automobile dealers offer loans at 0% APR, as indicated in a 2016 advertisement by a prominent car dealership, offering zero-percent financing or cashback deals on some models.

Zero percent financing means the obvious thingthat no interest is being charged on the loan. So if we borrow $1,200 at 0% interest and pay it off over 12 months, our monthly payment will be $1,200/12 = $100.

Suppose you are buying a new truck at a price of $23,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer financing with 0% interest or a $2,300 rebate on the purchase price. If you take the rebate, you will have to go to the local bank for a loan (of $20,700) at an APR of 6.5%.

What would your monthly payment be if you used dealer financing? (Round your answer to the nearest cent.)

$

4. When interest rates are low, some automobile dealers offer loans at 0% APR, as indicated in a 2016 advertisement by a prominent car dealership, offering zero-percent financing or cashback deals on some models.

Zero percent financing means the obvious thingthat no interest is being charged on the loan. So if we borrow $1,200 at 0% interest and pay it off over 12 months, our monthly payment will be $1,200/12 = $100.

Suppose you are buying a new truck at a price of $28,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer financing with 0% interest or a $2,800 rebate on the purchase price. If you take the rebate, you will have to go to the local bank for a loan (of $25,200) at an APR of 5.5%.

What would your monthly payment be if you took the rebate? (Round your answer to the nearest cent.)

$