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( Annuity payments ) Ford Motor Compary's current incentives include 5 . 3 percent APR financing for 3 6 months or $ 8 0 0

(Annuity payments) Ford Motor Compary's current incentives include 5.3 percent APR financing for 36 months or $800 cash back on a Mustang. Let's assume Suzie Student wants to buy th premium Mustang convertible, which costs $25,000, and she has no down payment other than the cash back from Ford. If she chooses the $800 cash back, Suzie can borrow from the VTech Union at 7.3 percent APR for 36 months (Suzie's credit isn't as good as Prof. Finance). What will Suzie Student's monthly payment be under each option? Which option should she choose?
a. If Sursie chooses 5.3 percent APR financing for 36 months to buy the premium Mustang convertible, which costs $25,000= PMT(33.216217), what will her monthly payment be?
(Round to the nearest cent.)
b. If Surie chooses $800 cash back to buy the premium Mustang convertible and borrows $24,200 from the VTech Credit Union at 7.3 percent APR for 36 months, how much will her monthly payment be?
(Round to the nearest cent.)
c. Which option shoutd Suzle Stufent choose? (Select the best choice below.)
A. Choose low interest rate financing because the monthly payment under this option is lower.
B. Choose cash back financing because the monthly payment under this option is lower.
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