You have just purchased a car and taken out a $48,000 loan. The loan has a five-year term with monthly payments and an APR of 5.5%.

a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.)

b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years from now)?

During the first month, you will pay $_____________ in principal.(Round to the nearest cent.)

During the first month, you will pay $_____________ in interest.(Round to the nearest cent.)

During the second month, you will pay $_____________ in principal.(Round to the nearest cent.)

During the second month, you will pay $_____________ in interest.(Round to the nearest cent.)

During the first year, you will pay $_____________ in principal.(Round to the nearest cent.)

During the first year, you will pay $_____________ in interest.(Round to the nearest cent.)

b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years fromnow)?

During the fourth year you will pay $________ in principal.(Round to the nearest cent.)

During the fourth year, you will pay $______ in interest.(Round to the nearest cent.)