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2. Annuity due As a young graduate, you have plans on buying your dream car in three years. You believe the car will cost $50,000.

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2. Annuity due As a young graduate, you have plans on buying your dream car in three years. You believe the car will cost $50,000. You have two sources of money to reach your goal of $50,000. First, you will save money for the next three years in a money market fund that will return 8% annually. You plan on making $5.000 annual payments to this fund. You will make yearly investments at the BEGINNING of the year. The second source of money will be a car loan that you will take out on the day you buy the car. You anticipate the car dealer to offer you a 6% APR loan with monthly compounding for a term of 60 months. the car loan is repaid at the beginning of each month. - What is the future value of vour savings in three years? (2 points) - What is the value of your car loan? ( 0.5 point) 0 What will be your monthly car loan repayment? (2 points)

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