5. One and half years from today, you would like to buy a new car that requires a down payment of $5,000.

5a) How much do you have to save today assuming Bank A is offering a nominal interest rate of 3.2% with quarterly compounding?

5b) If Bank B is advertising a special rate 3.6% with semiannual compounding. Should you switch your account to bank B?

6. You are buying a new home and you can only afford monthly payments of $2000. The current APR is 7.9%. How large of a loan can you afford if the term is:

6a) 20 years?

6b) 30 years?