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(10 marks) 2. Assume a 10% down payment. Calculate the loan payment on the remaining amount (total price - 10% down payment) if paid monthly

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(10 marks) 2. Assume a 10% down payment. Calculate the loan payment on the remaining amount (total price - 10% down payment) if paid monthly over 4 years. Assume a car loan rate of 8% compounded semi-annually. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. (You can also find a formula sheet posted in Canvas to assist you with these calculations). Otherwise, the following format, may help refresh your memory of the calculator functions for this step: Set your BALI Plus Calculator to END. Set your P/Y - 12 for monthly payments (**requires accessing the 2nd function of your BAll Plus, then select 'l/Y to open 'P/Y & C/Y) Set your C/Y -2 for semi-annual compounding (see above step regarding the 2nd'function) PV - The initial amount of your car loan (purchase price - down payment) FV - Zero (in the future your loan balance will be completely repaid) N-48 (4 years x 12 monthly payments) I/Y-8 CPT PMT- Your loan payment (10 marks) 2. Assume a 10% down payment. Calculate the loan payment on the remaining amount (total price - 10% down payment) if paid monthly over 4 years. Assume a car loan rate of 8% compounded semi-annually. (10 marks) You can refer to your notes from Math of Finance (Math 10037) if you choose to do the calculations by hand. (You can also find a formula sheet posted in Canvas to assist you with these calculations). Otherwise, the following format, may help refresh your memory of the calculator functions for this step: Set your BALI Plus Calculator to END. Set your P/Y - 12 for monthly payments (**requires accessing the 2nd function of your BAll Plus, then select 'l/Y to open 'P/Y & C/Y) Set your C/Y -2 for semi-annual compounding (see above step regarding the 2nd'function) PV - The initial amount of your car loan (purchase price - down payment) FV - Zero (in the future your loan balance will be completely repaid) N-48 (4 years x 12 monthly payments) I/Y-8 CPT PMT- Your loan payment

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