Refer to Plan 2 in Table 4-1. This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $24,000 on the purchase of a new automobile, and the annual interest rate is 12% (1% per month). TABLE 4-1 Three Plans for Repayment of $17,000 in Four Months with Interest at 1% per Month (1) (2) (3) = 1% x (2) (4) = (2) + (3) (5) (6) = (3) + (5) Amount Owed Interest Total Money Total at Beginning Accrued Owed at Principal End-of-Month Month of Month for Month End of Month Payment Payment (Cash Flow) Plan 1: Pay interest due at end of each month and principal at end of fourth month. $17,000 $170 $17.170 $170 17,000 170 17.170 170 17,000 170 17.170 170 17,000 170 17.170 17.000 17,170 68,000 5-mo. $680 (total interest) Plan 2: Pay off the debt in four equal end-of-month installments ( principal and interest). $17,000 $170 $17,170 $4.187.10 54.357.10 12,812.90 128.13 12.941.03 4.228.97 4,357.10 AWN 8,583.93 85.84 8.669.77 4.271.26 4.357.10 4,312.67 43.13 4.355.80 4.313.97 4.357.10 42,709.5 5-mo. 5427.10 (total interest) Difference = $1.30 due to roundoff Plan 3*: Pay principal and interest in one payment at end of fourth month. $17,000 $170 $17,170 SO 17.170 171.70 17.341.70 AWN 17,341.70 173,42 17,515.12 17,515.12 175.15 17.690.27 17.000 17.690.27 69,026.8 5-ma. 5690.27 (total interest) * Here, column 6 % column 3 + column 5. a. Monthly payments over a 60-month loan period will be how much? b. How much interest and principal will be paid in the third month of this loan