| Directions: Complete the problems. Show all steps. Write clearly and legibly. Scan your solutions and submit them as PDF/JPG/Word file. Write your name at the top-right of each page. Prob. 1 Bill has taken out an amortized loan for $20,000 to buy a boat. The loan has an annual interest rate of 16%, which is compounded monthly, and he will be paying it with monthly payments over eight years. What is his monthly payment? Do not round until the last step! If you round t/m in the denominator of the formula to 4 significand digits, then your answer will be only correct in the first 3 or 4 digits! Prob. 2 The Jones family is buying a new house at the price of $165,000. They will finance it with a twenty-year mortgage that has an interest rate of 8%. You may reference the table below for all parts of this problem. Number of Years for the Loan You do not need the amortized loan formula for this problem. Use the Annual Interest Rate 3 4 10 20 30 table. See example 4 on page 432 4% $29.53 $22.58 $10.12 $6.06 $4.77 596 29.97 23.03 10.61 6.60 5.37 6% 30.42 23.49 11.10 7.16 6.00 31.34 24.41 12.13 8.36 7.34 10% 32.27 25.36 13.22 9.65 8.78 12% 33.2 26.33 14.35 11.01 10.29 89 (a) Assuming that the family can make a $39,000 down payment, what will their monthly (b) mortgage payment be? If the family could increase the down payment by $10,000, then how much would their monthly mortgage payment be? In total, how much money can the family save by making the larger down payment? (c)