Amortized Loan You borrow $15,000 on a three year car loan at 8%. What are the monthly payments? If the above loan requires you to make only one annual payment at the end of each year, please draw out the three time lines (the ending balance in year three should be almost zero). Year 1 Year 2 Year 3 Perpetuity Value What is the present value of a perpetuity that pays you $1,000 per month if the annual interest rate is 6% ? APR vs. EPR If a loan advertises a 10% interest rate APR, but compounds monthly. What is the EPR