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125% Zoom Add Page Insert Co Collaborate Table Chart Text Shape Media Comment Format Billie and Colbie qualify for a 6-year car loan with a

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125% Zoom Add Page Insert Co Collaborate Table Chart Text Shape Media Comment Format Billie and Colbie qualify for a 6-year car loan with a 4.5% APR or a 3-year car loan with an 3.6% APR. They found a new 2019 Ford F250 Superduty listed at $41,400. Their combined annual income is $72,000. They know they shouldn't pay more than 10% of their monthly income on car payments, b) (10 points) Assuming Billie and Colbie will make payments for the entire life of the loan, how much will they pay monthly for each loan option? Are either of these options within 10% of their monthly income? Indicate which formula you use and identify all of the relevant variables (A, P, APR, n, Y. and/or PMT). c) (8 points) Assuming Billie and Colbie will make payments for the entire life of the loan, how much will they pay in total for each loan option including the down payment? Billie has been competing in Ski Ballet, and recently won the national championships. Now, they want to use the prize money (85000) to make a larger down payment. d) (8 points) If Billie and Colbie decide to put the prize money toward their down payment in addition to their original down payment), how will this affect the amount they would pay each month for each loan option (i.e. how much money would this save them each month for each option)? Indicate which formula you use and identify all of the relevant variables (A, P, APR, n, Y, and/or PMT). 125% Zoom Add Page Insert Co Collaborate Table Chart Text Shape Media Comment Format Billie and Colbie qualify for a 6-year car loan with a 4.5% APR or a 3-year car loan with an 3.6% APR. They found a new 2019 Ford F250 Superduty listed at $41,400. Their combined annual income is $72,000. They know they shouldn't pay more than 10% of their monthly income on car payments, b) (10 points) Assuming Billie and Colbie will make payments for the entire life of the loan, how much will they pay monthly for each loan option? Are either of these options within 10% of their monthly income? Indicate which formula you use and identify all of the relevant variables (A, P, APR, n, Y. and/or PMT). c) (8 points) Assuming Billie and Colbie will make payments for the entire life of the loan, how much will they pay in total for each loan option including the down payment? Billie has been competing in Ski Ballet, and recently won the national championships. Now, they want to use the prize money (85000) to make a larger down payment. d) (8 points) If Billie and Colbie decide to put the prize money toward their down payment in addition to their original down payment), how will this affect the amount they would pay each month for each loan option (i.e. how much money would this save them each month for each option)? Indicate which formula you use and identify all of the relevant variables (A, P, APR, n, Y, and/or PMT)

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