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6.Consider a 5-year auto loan of $80,000 at 6% APR. This loan requires 5 equal annual payments, with the first payment due at the end

6.Consider a 5-year auto loan of $80,000 at 6% APR. This loan requires 5 equal annual payments, with the first payment due at the end of the first year.

a. Show that the annual payment is $18,991.72.

b. Complete the table below.

c. Consider the same auto loan in the question above but requires monthly payments.

d. How much is the monthly payment?

e. What is the effective annual rate (EAR) of this loan?(5 marks)

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