Mark wants to buy a new car for his wife and agrees with a 1.5-year, $12,000loan. The financial institution quotes this loan at 10.5%, compounded monthly. Sixmonths later, Mark is offered an optional loan from another financial institution. The newloan is quoted at 9.25% and Mark asks that the number of payments be set to 12. A 1%fee will be added to the remaining loan balance for the principal of the new loan.

What was the first loan monthly payment and what is the amount Mark is going to pay for thenew one? Is it a good idea to change?