Question: Use Difference Equations to solve these problems: a)A recent college graduate wishes to borrow$ 20,000 in order to purchase a new car. A lender agrees

Use Difference Equations to solve these problems:

a)A recent college graduate wishes to borrow$ 20,000 in order to purchase a new car. A lender agrees to provide loan with an annual interest rate of 8%. The borrower wishes to pay off the loan in two years.

i)What monthly payment is required to do this?

ii)What is the total interest the borrower will end up paying during two years?

b)A home buyer can afford to spend no more than $900/month on mortgage payments. Suppose that the interest rate is 9% (annually) and the term of the loan is two years. Determine the maximum amount this buyer can afford to borrow.

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