I need help with this review problems ### Time Value of Money**1a.**You are looking to buy a new car. The purchase price of the one you want is $15,000 and requires a $3,000 down payment. If the financing rate is 6.75% APR for four years, what will your monthly payments be?**1b.**Suppose there is a special promotion that allows you to get $500 back (and still finance the rest at 6.75% APR) or get a 2.9% APR for four years. Which option will you choose?**2.**You can afford $1,000 a month for a house payment. You figure taxes and insurance will be about $250 a month. Assuming mortgage rates are 7% APR for a fixed rate loan, how much can you pay for a house assuming: a) a 20 year mortgage; b) a 25 year mortgage; c) a 30 year mortgage?**3.**Your TV blows up while watching Springer. The new one you would like to have costs $500, which you don't have right now. Rent-To-Own has the TV you want for $10.56 per week, due on Monday of each week with the first payment to be made when you take possession. At the end of 1 year (52 payments), you own the set. What interest rate are they charging? **Present Value of an Annuity Table**This table presents the present value (PV) factors for an annuity at various interest rates and periods (Pds). An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.**Columns Explanation:**- **Pds:** This column represents the periods or number of time periods (e.g., years, months).- **0.241667% - 8.000000%:** These columns show the present value factors at different interest rates (ranging from 0.241667% to 8.000000%).**Row Explanation:**- **Pds 1 - 360:** Rows represent the number of periods for which the annuity payments are made. For instance, 1 period, 10 periods, 15 periods, up to 360 periods.**Detailed Explanation of the Table:**- **1 Pd:** This row shows the PV factors when the annuity is for 1 period. For instance, at an interest rate of 0.241667%, the PV factor is 0.99759, meaning if you receive $1 at the end of 1 period, its present value is $0.99759.- **10 Pds:** This row indicates the PV factors for a 10-period annuity. At an interest rate of 8.000000%, the PV factor is 6.71008, meaning receiving $1 at the end of each period for 10 periods has a present value of $6.71008 if the interest rate is 8.000000%.- **360 Pds:** The last row shows the PV factors for a 360-period annuity. At an interest rate of 6.000000%, the PV factor is 150.30757, indicating receiving $1 at the end of each of the 360 periods has a present value of $150.30757.**Utilization:**This table can be used to determine the present value of an annuity for various periods and interest rates. To find the present value of an annuity:1. Identify the number of periods in the "Pds" column.2. Locate the appropriate interest rate column.3. Multiply the PV factor from the table by the annuity payment amount.**Example Calculation:**Suppose you wish to find the present value of an annuity that pays

Purchase price = $15,000Down payment = $3000Interest rate = 6.75% Period = 4 yearsNOTE: The first…

1a. 1b. 2. You are looking to buy a new car. The purchase price of the one you want is $15,000 and requires a $3,000 down payment. If the financing rate is 6.75% APR for four years, what will your monthly payments be? Suppose there is a special promotion that allows you to get $500 back (and still finance the rest at 6.75% APR) or get a 2.9% APR for four years. Which option will you choose? You can afford $1,000 a month for a house payment. You figure taxes and insurance will be about $250 a month. Assuming mortgage rates are 7% APR for a fixed rate loan, how much can you pay for a house assuming: a) a 20 year mortgage; b) a 25 year mortgage; c) a 30 year mortgage?