Suppose you purchase a new car for $25,000. You do not have money in your bank today but since you have just graduated from UTSA and have a job with high five figure annual salary, you see no problems in taking a five-year loan from your dealer. After looking at your options, you agree to the following terms: 0% down payment with 6.75% APR (compounded monthly). The loan must be paid back in monthly payments over the five years. (Round your answers to the nearest cent.)

(a)

How much (in $) do you need to pay each month? (Hint: If you cannot solve this question, make up a reasonable number as an answer, say $700, and answer the remaining parts)

$

(b)

In the first month, how much (in $) of the payments goes towards paying off principal and how much (in $) goes towards interest payments?

interest$ principal$

How much principal (in $) is remaining after the first month?

$

(c)

What about in the second month? How much (in $) of the payments goes towards paying off principal and how much (in $) goes towards interest payments?

interest$ principal$

How much principal (in $) is remaining after the second month?

$

(d)

Suppose you want to sell the car after 3 years (36 months). When you sell the car, you must pay off the remaining loan (principal). How much (in $) do you still owe?

$