You plan to buy a car that has a total cost of $25,000. You will make a down payment of $3,500. The remainder of the cars cost will be financed over a period of 5 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 8%. (The first payment will be due one month after the purchase date.) Answer the following.

a. Show the cash flows on the time line. (5 points)

b. Find the amount of equal monthly payments. (10 points)

c. Calculate the total amount of interest you will pay if you take this financing arrangement. (10 points