Car purchase: Suppose James has negotiated to buy a new car for $21,000. The dealer offers either $1000 cash back or a 48-month loan at APR of 2.9%. He has also recently received an inheritance from his great aunt of $30,000 in a trust fund that must be kept in a cash management account (currently paying an APR of 5.6%, compounded monthly), though the trustee will allow you to buy the car out of the account. James also can finance the car's cost at your credit union for an APR of 3.6%. To help persuade you to take the loan from the manufacturer, the dealer tells you (in agreement with law in most states that there is no penalty for repaying the car loan early if one chooses to do so. From this, you have identified three main options: Option 1: Four-year loan from the dealer. Assume James will borrow the full $21,000 from the car dealer's loan offer, calculate your minimum monthly payment. Determine the total amount he will pay for the car after four years and how much he will pay in total interest. Option 2: Four-year loan from the credit union. Assume James will take the $1,000 cash back offer so he will borrow $20,000 from the credit union's loan offer, calculate your minimum monthly payment. Determine the total amount he will pay for the car after four years and how much he will pay in total interest. Option 3: Use the trust fund to purchase the car outright. This avoids having to pay interest on a loan, but he must also consider the future interest he will loose from the investment. This option will allow him to take the $1,000 cash back offer which means that he will need to take $20,000 out of the trust fund to pay for the car. Calculate the interest earned in four years for both possibilities, having the full $30,000 in the fund and having just the remaining $10,000 after buying the car. Compare the three options, explain which option appears to be best, and why? Draw personal connection and conclusions