(5 marks) You want to buy a new Toyota 4Runner which has a price of $52,000. The dealership offers you two options: 1. You will receive a $4,000 cash back rebate if you pay for the car fully today. 2. You can finance the car at full price through the dealership. The financing period is seven years. At the end of seven years, you will have fully paid for the entire car. Payments will be monthly, at the beginning of the month. The payment amount will be equal for all payments. a) Suppose you meet the bank and the bank is willing to lend you money to buy the car today. The loan will be for seven years, with beginning of month, equal monthly payments. At the end of seven years, the loan will be fully repaid. The bank's interest rate is 3.52% p.a., compounded semiannually. What is your monthly payment if you take a loan from the bank? b) If you choose to finance through the dealership, what is the maximum effective annual interest rate you will be willing to pay? (5 marks) You want to buy a new Toyota 4Runner which has a price of $52,000. The dealership offers you two options: 1. You will receive a $4,000 cash back rebate if you pay for the car fully today. 2. You can finance the car at full price through the dealership. The financing period is seven years. At the end of seven years, you will have fully paid for the entire car. Payments will be monthly, at the beginning of the month. The payment amount will be equal for all payments. a) Suppose you meet the bank and the bank is willing to lend you money to buy the car today. The loan will be for seven years, with beginning of month, equal monthly payments. At the end of seven years, the loan will be fully repaid. The bank's interest rate is 3.52% p.a., compounded semiannually. What is your monthly payment if you take a loan from the bank? b) If you choose to finance through the dealership, what is the maximum effective annual interest rate you will be willing to pay? (5 marks) You want to buy a new Toyota 4Runner which has a price of $52,000. The dealership offers you two options: 1. You will receive a $4,000 cash back rebate if you pay for the car fully today. 2. You can finance the car at full price through the dealership. The financing period is seven years. At the end of seven years, you will have fully paid for the entire car. Payments will be monthly, at the beginning of the month. The payment amount will be equal for all payments. a) Suppose you meet the bank and the bank is willing to lend you money to buy the car today. The loan will be for seven years, with beginning of month, equal monthly payments. At the end of seven years, the loan will be fully repaid. The bank's interest rate is 3.52% p.a., compounded semiannually. What is your monthly payment if you take a loan from the bank? b) If you choose to finance through the dealership, what is the maximum effective annual interest rate you will be willing to pay? (5 marks) You want to buy a new Toyota 4Runner which has a price of $52,000. The dealership offers you two options: 1. You will receive a $4,000 cash back rebate if you pay for the car fully today. 2. You can finance the car at full price through the dealership. The financing period is seven years. At the end of seven years, you will have fully paid for the entire car. Payments will be monthly, at the beginning of the month. The payment amount will be equal for all payments. a) Suppose you meet the bank and the bank is willing to lend you money to buy the car today. The loan will be for seven years, with beginning of month, equal monthly payments. At the end of seven years, the loan will be fully repaid. The bank's interest rate is 3.52% p.a., compounded semiannually. What is your monthly payment if you take a loan from the bank? b) If you choose to finance through the dealership, what is the maximum effective annual interest rate you will be willing to pay?