Question: Q2) (40 points) A time line might be helpful to you; (you can do part d even if you could not do a, b and

Q2) (40 points) A time line might be helpful to you; (you can do part d even if you could not do a, b and c). Evgenii bought a used car for $8,000; he financed it with a five year bank loan at APR of 6% compounded monthly. His first monthly payment was at the day of the purchase. Two-year later, Evgenii got very good job and decided to sell the used car and pay off the loan. Evgenii wants to buy a brand new BMW at cost of $100,000. a) What is Evgenii monthly payment on his used car? b) What is the outstanding loan that Evgenii has to pay to the bank when he sells his used car? c) What is the dollar amount interest paid over the first two year when he pays his outstanding loan? d) Calculate the EAR and effective monthly rate for Evgenii bank loan. What is EAR and APR stand for, in words explain their meanings? In words explain why EAR is higher then APR

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