When you bought your car, you took out a five-year loan with an annual interest rate of 6.0% per annum. The annual payment for the car is $5,000. You have just made a payment and now you have decided to close the loan by paying the outstanding balance. What is the payment amount for the following scenarios?
a. Have you owned the car for one year (ie, four years until the loan expires)?
b. Have you owned the car for four years (i.e. one year left on the loan)?