Problem 3. (6 points)

The new fishing boat that you've been looking at has everything you need, but it's a bit out of

your price range. Your local bank offers you a loan with an APR of 6% for this $35,000 boat.

Fortunately, you received a $5,000 signing bonus, and you plan to use that toward the purchase

of your boat.

(a) What is your monthly payment for this 10-year loan?

(b) What is the equivalent value of these payments at the end of 10 years?