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5. Suppose you want to buy a Car. You have taken a loan of $25000 from a bank. You will pay monthly and lasts 48

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5. Suppose you want to buy a Car. You have taken a loan of $25000 from a bank. You will pay monthly and lasts 48 months. (the annual percentage rate, i=12%), (Draw the Cashflow), then Compute: (a) The monthly payment. (b) After the 20th payment, you want to pay off the remaining loan in a lump sum amount. What is the required amount of this lump sum? Ans. ($658.35, $16008.73)

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