In this section, answer the following questions, the step-by-step answer should be provided.

a. Prof. Finance is thinking about trading cars. After using the remaining equity from his trade-in as a down payment, he will still have to borrow $22,000 to pay for his new car. How large will Prof. Finances monthly car loan payment be if he can get a 5-year (60 equal monthly payments) car loan from the National City Bank at 6.5% APR?

b. Gateway Computers television ads say you can get a computer that sells for $1,599 for $45 a month for 48 months. What is the APR for this computer loan?

If the APR on this loan is 12% APR, what is the number of months that makes you indifferent in buying this computer between by paying the lump sum $1,599 and by making $45 monthly payment?