You are saving for and buying a brand new car. You plan to save $8000 dollars for the down payment using an annuity with and annual interest rate of 5% compounded annually. After 5 years of saving, you are planning to purchase a car for $28,000. You have been approved for a 36 month loan at a 6.1% interest rate.

1.) How much money must you deposit each year in the annuity in order to save the $8,000 in 5 years?

2.) After making the down payment, what is the amount of the loan you will take out?

3.) What is the monthly payment for the loan?

4.) What is the total amount you will pay for the car?

5.) How much will you spend on interest?