1. You want to buy a new sports car from Muscle Motors for $64,000. The contract is in the form of a 60-month annuity due at an APR of 6.15 percent. What will your monthly payment be?
2. A prestigious investment bank designed a new security that pays a quarterly dividend of $2.75 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the APR is 5.3 percent, compounded quarterly?