Show all work.

The answer must include PAINFG and the cash flow diagrams.

P = Present value (this value is not used in this problem) A = Annuity; this is the value that is given in this problem i = Effective interest rate n = Number of payments F = Future value; this is the value that we want to find in this problem (F = ?) G = Gradient value (this value is not used in this problem

1. Louis has determined that despite all efforts, he cannot rely on his tax returns to pay for his RV. He can however get a 6% loan compounded monthly from the Farmer Bank. What would his monthly payments be over 10 years? Compare to if he made annual payments for 10 years at 6%.