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Answer all parts please Part IV. (25 Points) Your best friend...

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Finance

Answer all parts please
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Part IV. (25 Points) Your best friend skipped two payments on their credit card during their junior year in college, and unknowingly ruined their credit. Now as a new graduate, they need to buy a pick-up truck for a new job. They found a great deal on a used truck, and need to borrow $15,000. Because their credit is bad, the only lender they can Ond is oering loans using monthly compounding at a nominal rate of 36%. 1. What is the appropriate period interest rate for this loan? 2. How much will your friend have to pay each month if they get a Ove year loan for the truck? 3. How much interest did your friend owe at the end of the Orst month of the loan? 4. What was the total dollar amount of payments, and in particular, what was the total dollar amount of interest paid over the course of the loan? 5. You have good credit, so Smiley Credit Union ofers you an auto loan for 4 percent nominal annual with monthly compounding for Ove years. What would you pay monthly for a $15,000 loan

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