1. You borrow $20,000 at 8% compounded quarterly and will pay off the loan in 20 equal quarter payments (every quarter of a year), starting 3 months after the loan is made. Which of the following is true for your payment in the 8th quarter? Show calculations to get credit.

(a) Loan payment = $1,223.13; Interest = $277.61; Principal = $945.52

(b) Loan payment = $1,223.13; Interest = $258.70; Principal = $964.43

(c) Loan payment = $2,037.04; Interest = $1,288.03; Principal = $749.01

(d) Loan payment = $2,037.04; Interest = $936.49; Principal = $1,100.55 3.

In order to buy a car, you borrow $35,000 from a friend at 12%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments.

a. How much are the monthly payments?

b. How much interest in in the 23rd payment?

c. What is the remaining balance after the 37th payment?

d. Three and one-half years after borrowing the money, you decide to pay off the loan. You have not yet made the payment due at that time. What is the payoff amount for the loan?