7. 8. Calculate the flat annual payment required to pay off a 13%, 5-year loan of $100,000. You have just taken a car loan of $15,000. The loan is for 48 months at an annual interest rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48 payments (to be made at the end of each of the next 48 months) are all equal. a. Calculate the monthly payment on the loan. b. In a loan table calculate, for each month: the principal remaining on the loan at the beginning of the month and the split of that month's payment between interest and repayment of principal. c. Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate (use either NPV or the PV functions) 9. You are considering buying a car from a local auto dealer. The dealer offers you one of two payment options: You can pay $30,000 cash. The "deferred payment plan": You can pay the dealer $5,000 cash today and a payment of $1,050 at the end of each of the next 30 months. As an alternative to the dealer financing, you have approached a local bank, which is willing to give you a car loan of $25,000 at the rate of 1.25% per month. Basic Financial Calculations a. Assuming that 1.25% is the opportunity cost, calculate the present value of all the payments on the dealer's deferred payment plan. b. What is the effective interest rate being charged by the dealer? Do this calculation by preparing a spreadsheet like this only part of the spreadsheet is shownyou have to do this calculation for all 30 months): D E F G H Month Cash payment 2 30,000 0 3 4 5 6 0 1 2 3 4 Payment under Difference deferred payment plan 5,000 25,000