You need $60,000 in four years to buy your first electric sports car. You will have...
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You need $60,000 in four years to buy your first electric sports car. You will have two sources of funds to finance your purchase: (1) You will deposit $20,000 today in an account that will earn 9.7% compounded annually for the next four years that you will use as a down payment on the day you buy the car. (2) You will take out a car loan on the day you buy the car. You anticipate the dealer to offer you a 6% APR loan with monthly compounding and end-of-month payments for 60 months. What will your monthly car payment be under this scenario? You need $60,000 in four years to buy your first electric sports car. You will have two sources of funds to finance your purchase: (1) You will deposit $20,000 today in an account that will earn 9.7% compounded annually for the next four years that you will use as a down payment on the day you buy the car. (2) You will take out a car loan on the day you buy the car. You anticipate the dealer to offer you a 6% APR loan with monthly compounding and end-of-month payments for 60 months. What will your monthly car payment be under this scenario?
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