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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.

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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 BAll 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 -down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 48 (4 years x 12 monthly payments) 1/4 = 8 CPT PMT=Your loan payment. CPT PMT= Your loan payment. 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 BAll 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 -down payment) FV = Zero (in the future your loan balance will be completely repaid) N = 48 (4 years x 12 monthly payments) 1/4 = 8 CPT PMT=Your loan payment. CPT PMT= Your loan payment

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