You have just purchased a car and taken out a $40,000 loan. The loan has afive-year term with monthly payments and an APR of 6.3 %

a. How much will you pay ininterest, and how much will you pay inprincipal, during the firstmonth, secondmonth, and firstyear? (Hint: Compute the loan balance after onemonth, twomonths, and oneyear.)

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

(Note: Be careful not to round any intermediate steps less than six decimalplaces.)