3) Your best friend consults you for investment advice. You learn that his tax rate is 25%, and he has the following current investments and debts: a. A car loan with an outstanding balance of $5 000 and a 6% APR (monthly compounding) b.Credit card with an outstanding balance of $10 000 and a 12% APR (semiannually compounding) c. A saving account with $200 000 balance, paying a 5.5% EAR d. A tax-deductible home equity loan with an outstanding balance of $25000 and a 4.8% APR (monthly compounding) Should your friend use his savings to pay off any of his outstanding debts? Explain