1. You are considering the purchase of a used Porsche, which you believe you can purchase for $16,000. Your credit union has approved you for a 48-month loan at 4.9% for the entire amount of the purchase.
2. Consider a loan for $300,000 with 20 annual payments and an interest rate of 5%. What is the payment amount with a balloon payment of $60,000?
3. What is the annual payment on a 20-year fully amortized loan of $500,000 with an interest rate of 5%?