1. You want to buy b a new car from Victoria Motor for $48,000. The contract is in the form of 60-month annuity due at 7.45 % APR. What will be your monthly payment?
a. $10020.54
b. $895.55
c. $954.75
d. $665.95
2. You borrow $10,000 from your bank that charges you 1.5 % per year compounded monthly for the first six months, increasing thereafter to 18% compounded monthly. How much interest you owe at the end of the first year?
a. $1016.70
b. $995.50
c. $1954.25
d. $765.95