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A friend of yours just bought a new sports car with a $6,000 down payment, and her $26,000 car loan is financed at an interest
A friend of yours just bought a new sports car with a $6,000 down payment, and her $26,000 car loan is financed at an interest rate of 0.50% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $12,000 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 $12,000. 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= 0.50% per month. a. Your friend still owes $ 1 on the car loan. (Round to the nearest dollar.)
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