3 Q2: Drop/Balloon Payment Tianyi buys a car that costs $43,200. a) She pays $7,000 down and takes a loan for the rest. She will make bi- weekly payments (assume 26 per year) of $235.02 at the end of each 2 weeks for the next 7 years. What is the effective annual interest rate on the loan? She changes her mind, and instead of option a), she pays nothing down, but increases her bi-weekly payments to $280, except for the last one which will be exactly enough to pay off the loan. (The term and interest rate on the loan are the same as in part a).) b) Is her last payment a drop payment or a balloon payment? How much is it? 3 Q2: Drop/Balloon Payment Tianyi buys a car that costs $43,200. a) She pays $7,000 down and takes a loan for the rest. She will make bi- weekly payments (assume 26 per year) of $235.02 at the end of each 2 weeks for the next 7 years. What is the effective annual interest rate on the loan? She changes her mind, and instead of option a), she pays nothing down, but increases her bi-weekly payments to $280, except for the last one which will be exactly enough to pay off the loan. (The term and interest rate on the loan are the same as in part a).) b) Is her last payment a drop payment or a balloon payment? How much is it