Answer
See below
Work Step by Step
(a)
Compute the Future value by substituting the values in the formula as mentioned below:
\[\begin{align}
& A=P\times {{\left( 1+\frac{r}{n} \right)}^{nt}} \\
& =\$6,000\times{{\left(1+\frac{0.065}{12}\right)}^{12\times5}}\\&=\$6,000\times{{\left(1+0.0054\right)}^{60}}\\&=\$8,288\end{align}\]
Hence, the value of the down payment is\[\$8,297\]
(b)
Computation of the interest amount can be done by deducting the Principal amount (P) from the future value (A) of the loan. Compute the interest amount as mentioned below:
\[\begin{align}
& \text{Interest amount}=\$8,288-\$6,000\\&=\$2,288\end{align}\]
Hence, the interest amount is \[\$2,288\]
