Name of Student:

Problem $1(100$ points$)$

Mrs$.$ Galgano plans to buy a $2022$ Tesla Model $Y$ which cost $$65000.$ She made a down payment

of $$4,500$ and still has about $$60,500$ to pay for the remaining cost of the SUV. At this moment,

she is left with no option but to obtain a loan from either the Tesla finance group at an APR of

$6\mathrm{.}00\%$ per year compounded monthly or from Bank of America car loan finance program at an

APR of $4\mathrm{.}86\%$ per year compound monthly. The payment plan for either of the two finance groups

is to span a $3$ year of monthly payment at the monthly rate of the stipulated APRs respectively.

a$)$ Indicate all that is given to solve the problem and draw the cash flow diagram

b$)$ How much saving will Mrs$.$ Galgano makes monthly if opting for the Bank of America

APR over the Tesla finance group APR.

c$)$ What will be the Bank of America's pay$-$off amount after a $1$ year of Monthly payment for

the Tesla Model Y$.$ Also draw the cash flow diagram to show how the pay$-$off was made.