9. Suppose John would like to buy a car. With his income, he knows he can afford to make monthly payments of $210. The best rate his is able to find is 2.25% compounded monthly for 5 years (60 months). How much could he finance a car for? 10. John receives a $3000 bonus from work. Which would lower his payment MORE, using the bonus as a down payment for his car (priced at the amount in the previous problem) or dividing up the $3000 into 60 pieces and using that to mitigate each payment? To complete this: find the payment for the "new" amount financed, and compare to the adjusted payment (which should be 210 - 3600). 11. Suppose you are planning to use annuities to pay for college tuition. In total, you will need to make 4 yearly payments of $20,000. (a) How much should you have in an account earning 1.5% interest compounded annually, in order to fund the future payments? (b) Suppose you want to start building up the fund now in order to have the amount in part (a) in 10 years. If you make yearly payments into the same account earning 1.5% interest compounded annually, what will each payment be