Question: a friend of yours bought a new sports car with...
A friend of yours bought a new sports car with a $4,500 down payment plus a $25,000 car loan that is financed at an interest rate of 0.25% per month for 60 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $14,000.
a. Calculate the required monthly loan payment on the car.
b. How much does your friend still owe on the car loan immediately after she makes her 24th payment?
c. Compare your answer to Part (b) to $14,000. This situation is called being "upside down." What can she do about it?
d. If she decides to keep the car but pay $200 more each month, how many months will it take her to payoff the remaining loan she owes?
PLEASE ANSWER ALL PARTS