Car loans in some countries are priced on a fixed rate basis. For example, the prevailing 3-year car loan is 3.25%. What this rate means is that for a $10,000 loan, the interest charge will amount to $325 per year for all the 3 years.

1) Based on the above information, compute the monthly installment payment for a 3-year loan of $60,000 if the above flat rate of 3.25% applies.

2) What is the annual percentage rate(APR) of this 3.25% fixed rate 3-year loan? State all assumptions.