1. Suppose Capital One is advertising a 60 month, 5.19% APR motorcycle loan. If you need to borrow $7,600 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.)
our monthly payment will be ____________
2. You are thinking about leasing a car. The purchase price of the car is $31,000.
The residual value (the amount you could pay to keep the car at the end of the lease) is $15,000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 5.75% APR, compounded monthly. What will be your lease payments for a 36-month lease? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Your monthly lease payments will be ?$_______________.