Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $566.83 at the end of each month over years 2,3 , and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest =$ , and principal =$ d. How much of the 18th month's payment is interest? How much is principal? payment interest =$, and principal =$ e. How much of the 22 nd month's payment is interest? How much is principal? payment interest =$ , and principal =$ Round your answers to the nearest whole dollar for ce. The tolerance is 5. Click here to access the TVM Factor Table Calculator eTextbook and Media Hint Assistance Used - Solving for part a can be very complicated. In Excel you can use GOAL SEEK to determine the interest rate. Set the equation for the PW of the cash flows equal to principal and solve for the nominal rate. - Part b can be solved using the equation: ieff=(1+(r/m))m1 or in Excel( :=EFFECT(r,m). - For parts c,d and e use the following equations where t is the payment number: Ut=A(PAi%,nt) It=A[1(PFi%,nt+1)] Pt=AIt Pt=A(PFi%,nt+1) Remember that these payments are monthly rather than the yearly presented. - Excel: =IPMT(i,t,n,-P) which returns the interest portion. = PPMT (i,t,n,P) which returns the payment portion. Note: P in this case is the original amount of money borrowed