2. Tim wants to buy a new car costing $35,000 but he still owes $4.000 on his old car. The dealership will roll his old loan into a new loan at a 6% rate over a 6-year term. He could also get a $4,000 personal loan at this credit union with a 7.9% rate for 2 years to pay off his old car loan. He could then take out a $35,000 car loan at the credit union for the new car at a 2.25% interest rate on a 6-year term.

A. What would Tims monthly payments and total interest cost if he does the dealership loan?

B. What would Tims monthly payments be on the $4,000 loan at the credit union and the monthly payments on the credit union car loan? What would be his total interest cost on both loans?

C. Assume Tim takes the 2 loans at the credit union. After he pays off the $4,000 loan in 2 years, how much would he have if he invested the difference between the dealership car loan and the credit union car loan for the next 4 years if he can earn 8.4% on his money?