1. Sally wants to buy a Ford Mustang. The MSRP is $26,559.Ford offers a purchase financing plan with no money down and 60 end-of-month payments of $530. Should she buy the car for cash or take Ford's purchase financing? Assume that she has the cash and that she could invest her money and earn at least 4%. What is the present value of all the payments?

2. The Shelby Cobra retails for $54,284 (all taxes included). What are the monthly loan payments for the car if you make a down payment of $4,230, the term is 3 years and the APR is 14.5%? (Car loan payments are made at the end of each month.) What is the amount of the monthly payment?

3. Angela owes $12,735.94. She has made arrangements to repay the debt in installments of $349.11 per month, and will be charged monthly interest of 1.59% on the overdue balance. How many months will it take her to repay the debt and interest? Assume end-of-month payments. How many months will it take Angela to pay off the debt?