This question has three parts: A payment (PMT) for a loan to purchase a Zamboni for an ice arena is to be paid off in equal monthly installments over 5 years with a fixed a 6% annual interest rate must be calculated. (a)To calculate the correct monthly payment amount the annual interest rate and number of periods must be converted to what values respectively? (b)The Zambonis price is $120,000 and the arena will have 25% down payment. Calculate the amount of the loan (the PV). (c)Calculate the (monthly) payment PMT.

(a)1: 6%, 5 years

2: 6%, 60 months

3: 0.5%, 5 years

4: 0.5%, 60 months

(b)1: $90,000

2: $120,000

3: $30,000

4: $60,000

(c) 1: $579.98

2: $1,159.97

3: $1,739.95

4: $21,365.88