1. You have just purchased a car and taken out a $ 53 comma 000 loan. The loan has a five-year term with monthly payments and an APR of 6.3 %. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years from now)? (Note: Be careful not to round any intermediate steps less than six decimal places.)

2. You are thinking about leasing a car. The purchase price of the car is $ 30 comma 000. The residual value (the amount you could pay to keep the car at the end of the lease) is $ 15 comma 000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 6.5 % APR, compounded monthly. What will be your lease payments for a 36-month lease? (Note: Be careful not to round any intermediate steps less than six decimal places.)