Image attached below is how to do solution.

Quantitative Problem: You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 6% annual return.

1. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.

   $

2. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.
   

   Interest: $

   Principal repayment: $

Review the definition for an amortized loan. Review the definition for the PV of an ordinary annuity and its equation. If using a financial calculator, be careful about the meaning of the negative sign and remember to include FV=0 (or be sure to clear all registers before starting problem). - Post. Submission Feedback a. Caiculate the annual loan payments using a financial calculator: Input data as follows: N= 6; U/VR=6;PV=19,000; and FV=0. Solve for PMT =$3,863.89 b. Calculate the portion of your first payment that represents interest and principal repayment: Interest = interest rate Loan balance remaining Interest =0.06$19,000 interest =31,140.00 Principal repayment = Loan payment - Interest payment Principal repsyment =$3,863,8951,140 Principal repayment =$2,723,89 - Solution Correct Response Quantitative Problem: You need $19,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today, He requires a 6% annual return. a. What will be 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 principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent. Interest: 5 Princlpal repayment: $