Problem 3: Loan calculations (3 points) A car loan requires 60 monthly payments of $250 and has a 6% APR.1 (a) What is the present value of the loan one month before the rst payment is due?

(b) A month from now, just after the 1st payment is made, what is the outstanding balance on the loan?

(c) If the loan were modied so that the APR was 0% in the rst year and 7.2% in the following 4 years, what would the (constant) monthly payment have to be in order for you to borrow the same amount as computed in part (a)? (0 payments in the rst year)