3. Exercise: Suppose that you want to buy a $20,000 car and you have $3,000 already. The bank charges 5% interest compounded monthly. (a) Find the payment amount if you plan to pay off in 5 years. (Hint: since we only need to finance $20,000$3,000=$17,000, the present value is $17,000 ). N=If=PV=PMT=FV=P/Y,C/Y=PMT:ENDBEGIN (b) Find the total interest (that is, the amount over $17,000 that we have to pay, i.e. NPMTPV=60PMT17,000). 4. Unpaid balance (a) Let n be the number of payments, then the unpaid balance after x payments (have oeen made )= present value to be paid off by (nx) payments