An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each losn payment consists of interest and repoyment of principal. This breakdown is often developed in an amortization schedule. Interest is in the first period and over the life of the loan, while the principal repayment is in the first period and it thereafter. Quantitative Problems You need $20,000 to purchase a used car, Your wealthy uncie is willing to lend you the money as an amortized loan, He would tike you to make annual payments for 5 years, wh the first payment to be made one year from today. He requires a 5% annual return. a. What will te your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much of vour first payment will be applied to interest and to princpal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest: $ Principal repoyment: s