MATH $1324$ SIGNATURE ASSIGNMENT

Scott wants to purchase a Toyota Rav$4$ XLE. The model he wants is available for $$26,789.$ Scott has saved $$4,000$ for a down payment, and the dealer has offered $$3,500$ for his trade$-$in$.$ He is considering three financing options:

Option $1$: Toyota's financial department is offering $0\%$ interest for three years.

Option $2$: Scott's credit union is offering $1\mathrm{.}98\%$ compounded monthly for four years.

Option $3$: His bank is offering $2\mathrm{.}97\%$ compounded monthly for five years.

Using the provided information, answer the following questions:

$($a$)$ What would Scott's monthly loan payment be for each option?

$($b$)$ What total amount of interest would Scott pay for each option?

$($c$)$ Describe the advantages and disadvantages of each financing option.

$($d$)$ If you were Scott, which of these three financing options would you use and why?