Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). 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).

a)Monthly payments over a 60-month loan period will be how much?

b) How much interest and principal will be paid within three month of this loan?