1. Loans Paying back a borrowed amount (A n )in n regular equal payments(R), with interest rate i per time period is a form of present value annuity. Rewrite present value equation to get the size of each payment.

2. Example 1 You plan to borrow $20,000 for 4 years. What is the monthly payment if the current APR for car loans is 6%? How much are you paying in interest for this loan? in interest for this loan.

3. Example 2 A couple takes out a 30 year mortgage to borrow $100000 at 4.2%, compounded monthly. What is their monthly mortgage payment? Amortization schedule details payment breakdown.

4. Example 2 - continued Currently paying: If the couple pays an extra $100 per month, how much would they save in interest? in interest. Now paying: in interest.