Smith borrows 20000 to purchase a car. The car dealer finances the purchase and offers Smith two alternative financing plans, both of which require monthly payment at the end of each month for 4 years starting one month after the car is purchased.

ii) 3% nominal annual interest rate compounded monthly for the first year followed by 5% nominal annual interest rate compounded monthly for the following three years. Find the monthly payment and the outstanding balance on the loan at the end of the first year.