Carol has a 2018 Kia Sorento that has a current value of $27,000. The car was purchased on the date of March 1, 2020, at an initial purchase price of $32,000. They paid $3,000 upfront in cash for it and set up a 7-year payment plan with a 5% APR compounded monthly interest rate (higher rate as it was a used car). The payments are paid bi-weekly. Determine the bi-weekly payment and balance outstanding. (HINT: Convert to a monthly payment for monthly cash-flow statement).

2)Mike has a 2019 Ford F150 which he bought on December 1, 2019, as he knew he would need a truck for work purposes. The initial price of the truck was $35,000 with zero payment upfront, and it has a 7-year payment plan with a 1.99% APR compounded monthly financing option. In addition, he will be paying it on a monthly basis. Determine the monthly payment and balance outstanding.The current value of this truck is $29,000.

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1 For Carols 2018 Kia Sorento Initial purchase price 32000 Down payment 3000 Loan amount 32000 3000 ... View the full answer