Q24 A B 1 Question 2: fx D E F G H J 2 You are in the market to purchase a new car. The car has a price $ 28,600 The dealership has offered you the following two financing options. 3 Assume that interest is compounded monthly and payments will be made at the beginning of the month. Use 0 or blank for the "type" argument. 4 This video may be helpful for the payment calculations: https://www.youtube.com/watch?v=U2fQFMMvafQ 5 6 Option 1: 1.50% interest rate for monthly payments f 7 years. 7 Option 2: $2,000 reduction in the price of the car, and an interest rate of 2.50% for monthly payments fo 5 years. 8 9 Answer the following questions. Use Excel formulas with cell references in your answers to receive credit. 10 K L M N 11 A. What is the monthly payment for Option 1? 13 B. What will be the total cash paid for the car including principal and interest for Option 1? ($592.23) ($49,747.05) . 15 17 10 C. How much total interest will be paid over the life of the loan for Option 1? D. What is the monthly payment for Option 2? 19 21 ZZ E. What will be the total cash paid for the car including principal and interest for Option 2? F. How much total interest will be paid over the life of the loan for Option 2? 23 G. Considering the lower payment for Option 1, and the reduction in price for Option 2, which would you choose? Thoroughly explain your reasoning. 24 25 26 27 28 29 30 31 32 33 34 35 36 37