a)

Use the appropriate formula to find the amortization payment (in $) you would need to make each month, at 12% interest compounded monthly, to pay off a loan of $8,500 in 3 years. (Round your answer to the nearest cent.)

b)

Solve by using tables Table 12-1 and Table 12-2.

Jen Roberts bought a used Toyota Prius for $18,500. She made a $2,500 down payment and is financing the balance at a particular bank over a 3 year period at 12% interest. As her banker, calculate what equal monthly payments (in $) will be required by Jennifer to amortize the car loan. (Round your answer to the nearest cent.)

c)

Use Table 12-2 to solve

Robert Sample is the grand prize winner in a college tuition essay contest awarded through a local organization's scholarship fund. The winner receives $4,000 at the beginning of each year for the next 3 years. How much (in $) should be invested at 6% interest compounded annually to award the prize? (Round your answer to the nearest cent.)