If the loan is to be amortized over 12 years at an interest


1) The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to the nearest cent.)

(a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 36 months?

24 months    $

36 months    $

(b) What will the interest charges be if she elects the 24-month plan? The 36-month plan?

24-month plan    $

36-month plan    $

2.) A group of private investors purchased a condominium complex for $2 million. They made an initial down payment of 15% and obtained financing for the balance. If the loan is to be amortized over 12 years at an interest rate of 6.1%/year compounded quarterly, find the required quarterly payment. (Round your answer to the nearest cent.) $ ?

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Financial Management: If the loan is to be amortized over 12 years at an interest
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