Phil needs a new car and can afford monthly payments of $400. The interest rate on new car loans is 7% (compounded monthly) and assume end of month payments. Phil is comparing whether to arrange a 48- or 60-month loan. With either loan, Phil will borrow the maximum amount and buy the most expensive car possible. a) What is the maximum he can spend on a car if he arranges a (i) 48-month loan? (ii) 60-month loan? c) Assume the average annual rate of depreciation of a cars value is 18%. Calculate the value of each car at the end of 5 years. d) If Phil arranges the 48-month loan, he can invest the $400 per month he will save for the last year in a mutual fund expected to pay 5%, compounded monthly. Compare Phils wealth (the value of his car plus his mutual fund investment) after 5 years if he arranges a 48-month loan versus a 60-month loan.