1. You are borrowing $5,330 to buy a car. The terms of the loan call for monthly payments for 5 years at a 5.00 percent interest compounded monthly. What is the amount of each payment?
$98.75
$100.32
$100.58
$77.83
$78.38
2. Class, what is trade credit? Please provide an example. How does the cost of costly trade credit generally compare with the cost of short-term bank loans?