1. You have just purchased a $60,000 car using a 6-year loan at an annual interest rate of 4.0% and monthly loan payments, with the first payment at the end of the first month.
2. Suppose you pay this loan off at the end of 3 years, so there are 3 years left on the loan. What will be your loan balance (loan payoff)?
a. $26,389.73
b. $27,025.63
c. $29,251.27
d. $30,000.00
e. $31,794.86
3. How much will be your second principal payment?
a. $741.17
b. $778.23
c. $817.14
d. $858.00
e. $938.71