1. Car purchase. - Assume that you want to buy a car 2 years from now. Based on the

following data, calculate: a) Monthly savings to get the down payment. b) Monthly payment

on the 4-year loan after buying the car. Note: Use months & monthly rates to solve this

problem. Data: Price of the car $20,000. Required down payment 20%. Interest rate on

savings 8% (annual). Interest rate on the car loan 12% (annual).