B. Questions on The Effective Interest Rate: 1. Consider the following two options proposed by an auto dealer: Option A: Purchase the vehicle at the normal price of $26,200 and pay for the vehicle over 36 months with equal monthly payments at 1.9% APR financing. Option B: Purchase the vehicle at a discounted price of $24,048 to be paid immediately. The funds that would be used to purchase the vehicle are presently earning 5% annual interest compounded monthly. 2. Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance