3. A- You are thinking about buying a car, and a local bank is willing to lend you $200,000 to buy it. Under the terms of the loan, it will be fully amortized over 2 years ( 24 months), and the nominal rate of interest is 12 percent with interest paid monthly. What would be the monthly payment on the loan? B- What would be the effective rate of interest on the loan? I IF 4. Which amount is worth more at 14 percent, compounded annually: $1,000 in hand today or $2,000 due in 6 years or 5000$ due in 10 years? Explain your answer? 5. While you were a student in college, you borrowed $18,000 in student loans at an interest rate of 3 percent, compounded annually. If you repay $1,500 per year, how long, to the nearest year, will it take you to repay the loan? 6. Your client is 40 years old and wants to begin saving for retirement. You advise the client to put $6,000 a year into the stock market. You estimate that the market's return will be, on average, 12 percent a year. Assume the investment will be made at the end of each year. A) If the client follows your advice, how much will she have by age 65? B) if your client wants to have a pension salary (retirement salary) by age 65 and forever, how much the yearly salary is, assuming that the interest rate at that date =5%