You borrow an auto loan at the Chase bank. The principal is $$20,000,$ the

interest rate is $7\mathrm{.}20\%$ annually, and the loan lasts for $36$ months. Calculate the monthly

installment you would pay the bank.

Question $2$ Given the information in Q$1,$ suppose that the bank charges an additional $2\%$

handling fee.

a$.$ If you pay this fee by increasing the monthly installment, how much in addition you

need to pay monthly?

b$.$ Suppose that you have $$400$ cash and you earn a $5\%$ annual interest rate if you deposit

the $$400$ into a saving account. Would you pay the fee now or would you still pay it

monthly?