1. David Puddy is hoping to purchase a nice new car for $30,000 in two years....

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Finance

1.   David Puddy is hopingto purchase a nice new car for $30,000 in two years. At that timehe plans on taking out a 5-year loan with monthly payments and anAPR of 4.75%. Based on his estimated earnings, Puddy thinks he willbe able to afford monthly payments of $400 per month. Puddy planson saving for the difference between the cost of the car and theamount he'll borrow by making monthly deposits over the next twoyears in a bank account that yields an annual rate of 3%.
     a.   What is the amount of the down payment Puddy willneed to purchase this car he wants to buy in two years?
     b.   What is the amount of the monthly savings depositsPuddy will need to make in order to save up the amount      he needs for the down payment?

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1. David Puddy is hopingto purchase a nice new car for $30,000 in two years. At that timehe plans on taking out a 5-year loan with monthly payments and anAPR of 4.75%. Based on his estimated earnings, Puddy thinks he willbe able to afford monthly payments of $400 per month. Puddy planson saving for the difference between the cost of the car and theamount he'll borrow by making monthly deposits over the next twoyears in a bank account that yields an annual rate of 3%. a. What is the amount of the down payment Puddy willneed to purchase this car he wants to buy in two years? b. What is the amount of the monthly savings depositsPuddy will need to make in order to save up the amount he needs for the down payment?