1.) You want to buy a new sports car from Muscle Motors for $39,000. The contract is in the form of an annuity due for 48 months at an APR of 9.50 percent. What will your monthly payment be?

A. $972.11

B. $923.50

C. $979.80

D. $952.66

E. $991.55

2.) You are looking at a one-year loan of $15,000. The interest rate is quoted as 12 percent plus 3 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 3 points to the lender up front and repay the loan later with 12 percent interest. What rate would you actually be paying here?

A. 13.92%

B. 15.46%

C. 8.64%

D. 17.01%

E. 12.00%