A. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have a 8% APR based on end-of-month payments.

What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $

What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $

B.

You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 8% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent. $

One year from today you must make a payment of $4,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 8% nominal interest compounded quarterly. How large must each of the two payments be? Round your answer to the nearest cent. $