1. A car buyer takes out a loan in the amount of $20,000 at an interest rate of 7.68% compounded monthly. The loan requires four years of monthly payments, paid at the end of each month. What will be the remaining balance on the loan after the car buyer makes the third payment?
2. Calculate the covariance between the returns of stock a and stock b is 0.0087. The standard deviation of stock A is 0.26 and the standard deviation of stock B is 0.37 what is the correlation coefficient between the returns of the two stocks