1)You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ EAR: %

2)Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. An initial $200 compounded for 1 year at 4%. $ An initial $200 compounded for 2 years at 4%. $ The present value of $200 due in 1 year at a discount rate of 4%. $ The present value of $200 due in 2 years at a discount rate of 4%.

3)Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $500 per year for 16 years at 6%. $ $250 per year for 8 years at 3%. $ $700 per year for 8 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $500 per year for 16 years at 6%: $ Future value of $250 per year for 8 years at 3%: $ Future value of $700 per year for 8 years at 0%: $