3. Matt is laying new floors in three rooms of his house and needs a loan that he will not have to pay back for 18 months. The interest rate for the loan is 4.9%, compounded quarterly. On the maturity date, Matt wants to make a single payment of no more than $12 000.

a) What is the most that Matt can borrow?

b) How much interest will Matt pay on his loan?

4. David mows lawns as a part-time job. He needs to buy a new lawn tractor, which will cost $6583. The bank offers him a loan at 12.4%, compounded monthly, with payments of $250 at the end of each month.

a) How long will David need to make payments?

b) How much interest will he pay?