(3) (a) You want to purchase a new car. You are offered a loan for $16,000 with an annual interest rate of 6% and a 36-month repayment period. Use the average balance method to estimate the total amount you will pay over the 36 months for this $16,000 car loan? Round to the nearest dollar.

1. Sylvia is negotiating the purchase of a car, and she determines that she must borrow $20,000. She is offered financing at an annual interest rate, i, with monthly payments beginning one month after the loan is made. She can repay the loan over a 2 year period (24 payments) at $592.15 per month, or over a 3 year period (36 payments) at $426.64 per month (the same interest rate for both cases).
Find the interest rate i and the monthly amount payable if she were to repay the loan over a 4 year period (48 payments) at this same interest rate.
2. Ralph and Silvana are looking at two different stocks, Profetto Group Inc. and ACME Inc. They see that the ACME Inc. stock currently pays dividends of $8 with a compound rate of r = 0.005. Both stocks currently sell for the same price, $320.
What is the annual interest rate?
HINT: Use the Dividend Discount Model formula

1. [5 points) You have decided to go "green" and have just purchased a good bike for $250 down and monthly payments of $125 for the next 6 months. Interest is 3.6% APR compounded monthly and all payments are made at the end of the month. Calculate the price, rounded up to the nearest dollar, if you had paid the full amount now.

A loan of S60000 is repain over 20 years by monthy ponyments of $450. Use two iterations of the Newton-Raphson method starting with the initial guess of an annual interest rate os 12% (compounded monthly), to determine the annual interest rate.

Note: If P is borrowed at a rate of r per period, and is repaid over N periods by payments of Y, then:  

Annual interest rate = 1

Report your answer to 3 decimal places.