Monthly loan paymentsPersonal Finance ProblemTim Smith is shopping for a used luxury car. He has found one priced at $35,000. The dealer has told Tim that if he can come up with a down payment of $7,400, the dealer will finance the balance of the price at a 6% annual rate over 4 years (48 months).(Hint: Use four decimal places for the monthly interest rate in all yourcalculations.)

a.Assuming that Tim accepts thedealer's offer, what will his monthly(end-of-month) payment amountbe?

b.Use a financial calculator or spreadsheet to help you figure out whatTim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.9%?