Quantitative Problem: You need $16,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 6% annual return.

What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.

$

How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.

Interest: $

Principal repayment: $