Amortization and annuities

Periodic deposits, loans, amortization and annuities

[Maximum mark: 6]George wants to buy a new car, and he decides to take out a loan of $35000 from a bank. The loan is for 5 years, with a nominal annual interest rate of 3.2 %, compounded monthly. George will pay the loan in fixed monthly installments.(a) Determine the amount George should pay each month. Give your answer to the nearest dollar.[3](b) Calculate the amount George will still owe the bank at the end of the fourth year.[3]