Cost of car, cash 30,000 Payment 9.. You are considering buying a car from a local auto under dealer. The dealer offers you one of two payment Month Cash payment deferred Difference options. payment plan You can pay $30,000 cash. - The "deferred payment plan": You can pay the dealer Deferred payment plan #MACRO? $5,000 cash today and a payment of $1, 060 at the end Cash payment 5,000 #MACRO? of each of the next 30 months. As an alternative to the Monthly payment 1.050 dealer financing, you have approached a local bank, Number of months which is willing to give you a car loan of $25,000 at the rate of 1.25 percent per month. Bank car loan rate (annual a. Assuming that 1.25 percent is the opportunity cost Bank car loan rate (monthly) calculate the present value of all the payments on the dealer's deferred payment plan. b. What is the effective interest rate being charged by 9.a. Present value of deferred payment plan MACRO? the dealer? Do this calculation by preparing a spreadsheet like the one that follows (only part of the Dealer's monthly IRR MACRO? spreadsheet is shown-you have to do this calculation Annualized (in this case, multiplied by 12) MACRO? for all 30 months)