Suppose you would like to buy a car when you graduate, which will be in 2 years. You are pretty sure the car will cost $35,000. You have access to an account that earns 6%.

a. How much do you need to set aside in that account if you make deposits on a quarterly basis to have enough money to make a $10,000 down payment when you purchase the car?

b. How much will your car payment be if you agree to pay off the car with fixed monthly payments over 4 years and the interest rate is 4%?