Tim Smith is shopping for a used car. He has found one priced at $5,800. The salesman has told Tim that if he can come up with a down payment of $700 the dealer will finance the balance of the price at an annual rate of 15% over 2 years (24 months).

a.Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b.Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 11%?