$(($I attached a picture of table to use$))$

Question $1$: Monthly Payments

Calculate the monthly payment for both the new and used car loans. You will not make a down payment for either car. Also, create a cash flow diagram showing the monthly payments for each choice.

Question $2$: Impact of Higher Payments $($Used Car$)$

For this question, consider the financing terms for the used car.

$-$ You have decided to increase your monthly payment by $\backslash (10\backslash \%\backslash )$ to reduce interest costs.

Calculate: $\backslash (\backslash$square $\backslash )$

$-$ The new monthly payment

$-$ How much interest you save over the life of the loan.

$-$ The time it takes to pay off the loan with the increased payments.

Question $3$: Down Payment Impact $($New Car$)$

You now have $\backslash (\backslash$$ $5,000\backslash )$ available for a down payment on the new car, reducing the loan amount to $\backslash (\backslash$$ $42,000\backslash ).$ The loan term and interest rate remain unchanged.

Calculate:

$-$ The new monthly payment

$-$ The total cost of the loan $($future value at $60$ months$)$

$-$ Whether making the down payment is financially beneficial

New Car:

Principal loan: $$47,000$

Interest rate: $6\%$

Loan term: $60$ months $(5$ years$)$

Used Car:

Principal loan: $$27,000$

Interest rate: $10\%$

Loan term: $60$ months $(5$ years$)$