1. A commercial bank will loan you $51,004 for 6 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 8.75 percent of the unpaid balance. What is the amount of the monthly payments?
2. When calculating how interest affects the total present and future value, how do you differentiate between payments received at the beginning of a year, and payments received at the end of a year? Does this have an effect on the total you receive?