You have borrowed a loan of $20,000 from a bank to buy a car from Chase at the interest rate of

7.5% each year. You have promised the Chase to make mortgage style payments.

16. If you want to borrow this loan for three years, what is the total payment in each year?

A) $6,191

B) $1,500

C) $ 7,691

D) $ 7,154

E) None of the above

17. If you want to borrow this loan for three years, what is the principal payment in year one?

A) $6,191

B) $1,500

C) $ 7,691

D) $ 7,154

E) None of the above

18. If you want to borrow this loan for three years, what is the principal payment in year two?

A) $6,191

B) $1,500

C) $ 7,691

D) $ 7,154

E) None of the above

19. If you want to borrow this loan for three years, what is the principal payment in year three?

A) $6,191

B) $1,500

C) $ 7,691

D) $ 7,154

E) None of the above

20. If you want to borrow this loan for three years, what is the interest payment in year one?

A) $6,191

B) $1,500

C) $ 7,691

D) $ 7,154

E) None of the above

21. If you want to borrow this loan for one year, what is the total payment?

A) $21,500

B) $20,000

C) $1,500

D) $7,691

E) None of the above

22. If you want to borrow this loan for one year, what is the principal payment in this year?

A) $21,500

B) $20,000

C) $1,500

D) $7,691

E) None of the above

23. If you want to borrow this loan for one year, what is the interest payment in this year?

A) $21,500

B) $20,000

C) $1,500

D) $7,691

E) None of the above

24. If you want to borrow this loan for one year, what is the beginning balance in this year?

A) $21,500

B) $20,000

C) $1,500

D) $7,691

E) None of the above

25. If you want to borrow this loan for one year, what is the ending balance in this year?

A) $21,500

B) $20,000

C) $1,500

D) $7,691

E) None of the above