2.

Quantitative Problem: You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest: \$ Principal repayment: $ Hide Feedback Incorrect - Check My Work Feedback Review the definition for an amortized Ioan. Review the definition for the PV of an ordinary annuity and its equation. If using a financial calculator, be careful about the meaning of the negative sign and remember to include FV =0 (or be sure to before starting problem)