Assume that

you just graduated from St$.$ Ambrose University, get your first job and plan to buy a new

car, a house and take care of your student loan today as described below.

a$.$ New Car: You purchased a new car for $$27,999.$ You plan to make a $$1,000$

down payment on the new car. What is the amount of your monthly payment on

the remaining loan if you must pay $6\mathrm{.}60\%$ annual fixed interest on a $48-$month car

loan?

b$.$ House: You are buying your first condominium $($condo$)$ for $$189,500,$ and you

will make a $20\%$ down payment to avoid any extra insurance $($i$.$e$.,$ PMI$)$ on your

home mortgage. You have arranged to finance the remainder with a $30-$year,

monthly payment, amortized mortgage at a $7\mathrm{.}25\%$ fixed nominal interest rate,

with the first payment due in one month. What will your monthly payment be$?$

c$.$ Student Loan: Your outstanding student loan is $$25,000$ today and you want to

pay it back immediately. If you plan to repay your student loan within the next $20$

years and the fixed interest rate on your student loan is $5\mathrm{.}5\%,$ what will be your

monthly payment on your student loan?