Problem $6-20$ Calculating Loan Payments $[$LO$2,4]$

You want to buy a new sports coupe for $$89,500,$ and the finance office at the

dealership has quoted you an APR of $7\mathrm{.}1$ percent for a $60-$month loan to buy the car.

a$.$ What will your monthly payments be$?($Do not round intermediate calculations and

round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the effective annual rate on this loan? $($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$