You want to buy a car that costs $$20,000$ and are offered the following terms.

Loan A: the interest rate is an annual $5\%$ with interest added monthly and you will need to pay the loan back in five years.

a$)$ How much is your monthly payment?

b$)$ How much in total will you pay over the life of the loan? Hint: multiply the monthly payments by the number of months.

a$)$ Is it a single sum or an annuity.

b$)$ Write here what you are looking for

c$)$ Fill in the following.

$PV=-,=$

$FV=,N,=$

$PMT=$

Your answer:

$11.$ After you are told your monthly payment on Loan A $($above$)$ you think the monthly payment is too high and ask if the dealer can cut you a better deal. He offers Loan B$.$ Under Loan B$,$ your interest rate will be an annual rate of $7\%$ with interest added monthly but you have seven years to pay.

a$)$ How much is your monthly payment?

b$)$ How much in total will you pay over the life of the loan? Hint: multiply the monthly payments by the number of months.

What is the difference between the total amount you pay for Loan A versus the total amount you pay for Loan B$?$

You see a condo that you would like to buy in Kapolei. The price is $300,000$ and your bank says they will give you a $30$ year mortgage at $4\%$ annual interest with interest added monthly. What would your monthly payment be$?$

a$)$ Is it a single sum or an annuity.

b$)$ Write here what you are looking for

c$)$ Fill in the following.

$\backslash$table$[[PV=,N$