FIN250 Homework 6: Loans 1. Sharon just bought a new refrigerator for $3,000. She financed the purchase as a 2- year loan at 15%. What will her monthly payment be? How much total interest will she pay over the life of the loan? (Hint: What are her total payments for the life of the loan?) 2. Greg is planning to take out a $20,000 loan for a car. If the interest rate is 5%, what will his monthly payment be for a 60-month loan? What about for a 48-month loan? 3. Emily has maxed out her credit card buying things for her new apartment she moved into shortly after graduation. She owes $15,000. She has vowed to herself that she will pay $280 per month toward the credit card and will not use it again until it is paid off. If the card has an annual interest rate of 18%, how long will it take her to pay it off? (Assume monthly compounding.) 4. If Emily can make that $310 instead of $280, then how long will it take