Tim Smith is shopping for a used luxery car. He has found one priced at $38,000. The dealer has told Tim if he can come up with a down payment of $6,700 the dealer will finance the balance of the price at a 6% annual tate over 5 years (60 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.)

a. Assuming that Tim accepts the dealers offer, what will his monthly (end-of-month) payment amount be?

b. Use a financial calculator to help you figure out what Tims monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.5%?

(Round answers to the nearest cent)