Borrow or pay cash for an asset Personal Finance Problem Bev and John Cox are set to move into their first apartment They visited Northerly Furniture looking for a dining room table and buffet Dining room sets are typically one of the more expensive home furnishing tems, and the store offers financing arrangements to customers Bev and John have the cash to pay for the furniture, but it would definitely deplete their savings so they want to look at all their options The dining room set costs $13,500 and Northerly Furniture offers a financing plan that would allow them to either (1) put 22% down and finance the balance at 4,3% annual interest over 48 months of (2) receive an immediato $450 cash sebut thereby paying only $13,050 cash to buy the furniture Bev and John currently vam 17% annual interest on their savings a. Calculate the cash down payment for the loan b. Calculate the monthly payment on the financed amount. (Hint: Treat the current loan as an annuity and solve for the monthly payment) c. Calculate the initial cash outlay under the cash purchase option Do not forget to reduce the cash price by the cash down payment forgone on the loan (part a). d. Assume that they can com a simple interest rate of 17% on savings, what will Bev and John give up opportunity cost over the years they pay cash? What is the cost of the cash aterative at the end of 4 years? 1. Should Bev and John choose the financing of the cash atomotive? .. The cash down payment is (Round to the west cent) b. The mostly payment a $(Round to the nearest cont.) c. The Incrementai Intial canh ostay under the cash alternative Round to the nearest cent) d. Coven that they can eam 1.7% on savings, the amount Bey and John phu up lopponunty costy over the years they pay cash is $(Round to the nearest . The cont of the cash native at the end of yours (Round to the newest cent) 1. The cost of the racing surnate at the end of 4 years is Round to the nearest cant Cost of the handing stive month Morly payment COM Therefore, they should take the Select from the drop-down menu) Enter your answer in each of the answer boxes