You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 9% annual return.
a. What will be your annual loan payments? Round your answer to the nearest cent. Do not round intermediate calculations.
$__________
b. How much of your first payment will be applied to interest and to principal repayment? Round your answer to the nearest cent. Do not round intermediate calculations.
Interest: $_______
Principal repayment: $________