You have just taken out a $55-$year loan from a bank to buy an engagement ring. The ring costs $$$$5$ comma $0005,000.$ You plan to put down $ $1$ comma $000$$$1,000$ and borrow $$$$4$ comma $0004,000.$ You will need to make annual payments of $$$$1$ comma $0001,000$ at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the$$ bank's perspective?

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Part $1$

Show the timeline of the loan from your perspective.$($Select the best choice$$ below.$)$

A$.$

The timeline starts at Year $0$ and ends at Year $5.$ It shows a cash flow of $-$$$4,000$ in Year $0$ and cash flows of $$1,000$ each year from Year $1$ to Year $5.$

YearYear$001122334455$

Cash FlowCash Flownegative $ $4,000$$$4,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$

B$.$

The timeline starts at Year $0$ and ends at Year $5.$ It shows a cash flow of $$4,000$ in Year $0$ and cash flows of $-$$$1,000$ each year from Year $1$ to Year $5.$

YearYear$001122334455$

Cash FlowCash Flow$ $4,000$$$4,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$

C$.$

The timeline starts at Year $0$ and ends at Year $5.$ It shows a cash flow of $$5,000$ in Year $0$ and cash flows of $-$$$1,000$ each year from Year $1$ to Year $5..$

YearYear$001122334455$

Cash FlowCash Flow$ $5,000$$$5,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$negative $ $1,000$$$1,000$

D$.$

The timeline starts at Year $0$ and ends at Year $5.$ It shows a cash flow of $-$$$1,000$ in Year $0$ and cash flows of $$1,000$ each year from Year $1$ to Year $5.$

YearYear$001122334455$

Cash FlowCash Flownegative $ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$$ $1,000$$$1,000$