You have received a job offer upon graduation from a prestigious consulting firm. Before you receive your first paycheck, you have decided to purchase a $97,400 Porsche. But, you have no money for a down payment. The Worst National Bank of Fowlerville is willing to give you a 5-year loan, but they require a 10% down payment. You have determined that you will be able to save enough to have enough for the down payment 3 years from now. You have also determined from Car and Driver magazine that the model of Porsche you want is expected to rise in price by 5% annually over the next 3 years. The terms of the loan are as follows:

• 10% down payment on the price of the car is required at the time the loan is disbursed
• Annual interest rate of 12%
• 5 year loan with monthly payments

• $1,949.95

• $2,166.61

• $2,257.31

• $2,508.12

• $11,701.04

Assuming you will make the required down payment when you buy the car 3 years from now, how much will your monthly payments be?