Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used car. He has found one priced at $5,000. The salesman has told Tim that if he can come up with a down payment of $600, the dealer will finance the balance of the price at an annual rate of 15% over 4 years (48 months).

a.Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be?

b.Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 11%?

2- Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a loan with initial proceeds of $11,000 where annual end-of-year installment payments of $2,263 are required.

a.If Mia can borrow at an annual interest rate of 14% how long will it take for her to repay the loan fully?

b.How long will it take if she can borrow at an annual rate of 11%?

c.How long will it take if she has to pay 17% annual interest?

d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.