Engineering Finance

You're interested in purchasing a Tesla Model S (an all-electric car that accelerates from 0 to 60 in 5.6 seconds!). The basic model S costs $62,400 today. Being the boss you are, you convince Elon Musk to give you the car for payments of $820 a month. Elon issues a $62,400 loan to you at 6% nominal interest per year, compounded monthly. Assume the loan is taken out today and the first payment is one month from today. a. For the first $820 payment, how much is dedicated towards interest? Where does the remainder of your $820 go? b. How long will it take to pay off the loan of $62,400 at a 6% nominal interest rate per year, compounded monthly? Express your answer to the nearest multiple of 12 months. " c. If you were to make payments every 6 months, what would be the effective semiannual interest rate? Assume that you have been making monthly payments as in parts a and b. Your iPhone app from problem 1 reached 200 million downloads after two years and you're now a millionaire. You want to pay off the rest of the loan to Elon immediately so you don't have to pay any more interest. How much money do you give him two years after you received your Tesla Model S