You are offered a job in New York and you plan to buy a car for transportation. The car costs $30,000 and the car dealer is willing to make you a loan of $30,000 with a 3-year maturity.

a. The car dealer advertises an annual stated interest rate of 9%, with monthly payments (i.e., the 9% annual interest rate is monthly compounded). How much do you need to pay every month? Assume you start making the payments at the end of first month.

b. Forget a). Suppose your job offers you $9000 at the end of every month for 3 years. In addition to make the monthly payment for the car, you need to pay other expenses as well. The first expense of $88,000 is paid at the beginning of the first year, the expense will increase by 10% per year, and the last expense payment will be paid at the beginning of the third year. The annual interest rate of a bank loan is 9%, annually compounded. Please calculate to check whether you earn enough to pay for the expenses and the car.