1. On the Tesla website, it has the new Model X price listed at $89,000. Tesla will take $6290 off this price for what they call a gasoline savings. Then there is an additional charge of $1200 for destination and document fees.

Tesla requires a down payment of $7500. The loan will require 72 monthly payments.

Lets say the interest rate is 2.49% nominal rate compounded monthly.

1. What is the loan amount?
3. What is the monthly interest rate?
5. What will your monthly car payment be if you buy it?
7. (12 points) An Engineer is evaluating automating an assembly line with equipment that has a life of 5 years.

8. Using this motor would result in labor savings of $8000 in 1^st year then increasing annually by 3% through the 5 year life.

   If i = 10%

9. What is the present value of the 5 years labor savings?
11. What is the future value of the 5 years labor savings at end of year 5?