Crane Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Crane offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers.

On January 1, 2017, a customer purchased a new $30,600 automobile, making a downpayment of $1,080. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Crane required a $369 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2018. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2020.

1Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548.)

2Indicate the amount the customer owes on the contract at the end of the first year. (Round answer to 0 decimal places, e.g. 38,54

3Compute the amount of the new quarterly payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

4Prepare a note amortization schedule for these new payments for the next 2 years