To purchase a new truck, you borrow $22,000. The bank offers an interest rate of 4.5% compounded monthly. If you take a five-year loan and will be making monthly payments on the loan, what is the total amount that must be paid back?

a. What is the number of time periods (n) you should use in solving this problem?

b. What rate of interest (i), per period of time, should be used in solving this problem?

c. Is the present single amount of money (P) known? (Yes, No)

d. Which time value factor should be used to solve this problem?

e. What amount must be paid back each month?

f. What is the total amount that will be paid back over the life of the loan?

g. How much of the total amount repaid represents interest?