John is turning 13 today. His birthday resolution is to purchase a car that he wants on his 18th birthday. The car costs $15,000 today and its price is expected increase at 2% per year. 2 John wants to start saving to buy this car. A local bank offers a savings account paying an annual interest rate of 5%. He plans to make 6 annual contributions of $1,000 starting today. He will use the accumulated balance in his account to make a down payment on the car and finance the rest from the dealer. John expects the dealer to offer loan terms of 7 payments starting one year from the loan start date and an interest rate of 7%. What is the amount that John will have to finance on the purchase date? What will his payments be?