Define precisely how to determine the restricted account range on a short sale. Be sure and clearly demonstrate what determines the upper and lower bounds of the restricted account range. If you deposit $5,000 per year into a Roth IRA earning 10% annual interest for ten years and then stop making payments, how much will be in the account after a total of forty years? Assume you can purchase a car on a "smart buy" for $3, 200 down (including all fees, taxes and down payment), $399 per month for 36 months and pay a residual (balloon) payment of $18, 972 after 36 months. If you can purchase the car for $31, 200 in cash (including all fees and taxes) or finance this balance through your credit union at a 6.9% APR over sixty months then:. (a). What is the value of the car under the "smart buy" option assuming your opportunity cost of capital is 6.9%