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A friend of yours just bought a new sports car with a $4.500 down payment, and her $30,000 car loan is financed at an interest
A friend of yours just bought a new sports car with a $4.500 down payment, and her $30,000 car loan is financed at an interest rate of 0.75% per month for 36 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $9,000 a. How much does your friend still owe on the car loan immediately after she makes her 24th payment? b. Compare your answer to Part (a) to $9,000. This situation is called being "upside down." What can she do about it? Click the icon to view the interest and annuity table for discrete compounding when i = 0.75% per month a. Your friend still owes $on the car loan. (Round to the nearest dollar.) b. What is the best thing to do in this situation? Choose the correct answer below. O A. She should keep the car longer and hope the vehicle remains in good working order. OB. She should stop paying out her loan as it is obviously unfair. O C. She should sell the car immediately. OD. In case the mileage is high, the car is worth more than $9,000 and she should consider selling it
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