John purchased a new car for a market price of $28,670. He paid $8,100 immediately and agreed to pay $8,100 at the end of the first, second, and third years. The monthly payment included the original principal and interest. The maintenance fees for the car were $1,200 at the end of the first year, $800 for the second year, $600 for the third year, and $1,200 for the fourth year. The overhaul cost at the end of the third year was $4,000. John sold this car at the end of the fourth year after paying the maintenance fee. The car was sold at $17,250. The car emitted exhaust fumes and polluted the environment. The air quality cost for the car was $800 per year. Draw the cash flow diagram from the perspective of John. John borrowed $8,000(P) from a bank today for a term of six years (n). The interest rate (r) is 6.5% per year. Calculate the total amount (F) that John needs to repay the bank for the entire term if (A) The interest rate is a simple interest rate. (B) The interest rate is a compound interest rate and John will repay the bank 1/6 of the initial principal at the end of each year plus the interest due at the end of each year. (C) The interest rate is a compound interest rate and John will repay the bank only the interest at the end of each of the first five years (John will also repay the bank for the original sum plus the interest due for the sixth year at the end of the term). (D) The interest rate is a compound interest rate and John will make a single payment at the end of the term. (E) The interest rate is a compound interest rate and John will make a constant amount of payment at the end of each year. Additional question: Are the four payment plans B, C, D, and E equivalent? Briefly explain why or why not