2. Monthly Payments and Finance Charges. Kimberly Jensen of Storm Lake, lowa, wants to buy some living room furniture for her new apartment. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture she wishes to purchase costs $4,800, with no down payment required. Make the following calculations: (a) What is the amount of the monthly payment if she borrowed for four years? N I/Y PV PMT (compute) FV (b) What are the total finance charges over that four year period? Hint: (PMT x 48) - 4,800 = (c) How would the payment change if Kimberly reduced the loan term to three years? N I/Y PV PMT (compute) FV (d) What are the total finance charges over that three year period? Hint: (PMT x 36) - 4,800 = (c) How would the payment change if she could afford a down payment of $500 with four years of financing? N I/Y PV PMT (compute) FV