You are planning to buy a new car in 3 years. Assume your new car will cost you $35,000 with everything when you buy it. You have $2,000 today, and you plan to invest $200 every month from now on. Assume your investment will earn an 7% annualized return, compounded monthly. You will use your investment outcome as a down payment for this purchase.

Part a, how much will you need to borrow for the new car?

Part b, if the dealership offers a special 4-year, 4.49% financing with an $800 discount, how much is your monthly payment?

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