Cash flows are end-of-period unless otherwise specified.

You are looking to purchase a new car with the assistance of a $22,000, five-year loan at an APR of

5.4%, compounded monthly.

Required:

1. What is the monthly payment on this loan?

2. What is the amount of interest and principal on the loans first monthly payment?

3. What is the amount of interest and principal on the loans sixteenth monthly payment?

4. Show a second method to determine the amount of interest and principal on the loans sixteenth monthly payment.

5. How many months would it take to pay this loan down to $8,000?

6. What is the total amount of interest and principal that you would pay over five years?