Question 3 You are considering purchasing a used car. The total price is $10,000 out of which $2000 will be an immediate downpayment and the remainder to be paid in equal monthly payments starting the 4 month from now at an annual interest rate of 12.12% compounded quarterly. Payments are due at the end of each month, and each is equal to $550 except for the final payment which is less than $550. In how many months from now does this last payment occur, and what is the exact value of this last payment? Question 4 I A machine bought now (at time t = 0) for $18,000 will make a profit of $1000 at the end of the first year increasing thereafter by 6% each year (compared to the previous year) till 13 years from now (ie, including t = 13), after which the profit will decrease by a constant percentage every year compared to the preceding year until 25 years from now i.e. including t = 25). The profit in the last year (at t = 25) is identical to that in year 4 i.e. at t = 4). If the effective interest rate is 6% per year, determine whether this investment is profitable of not