You want to buy a new sports coupe for $$84,500,$ and the finance office at

the dealership has quoted you an APR of $4\mathrm{.}7$ percent for a $60-$month equal$-$payment loan to buy the

car. At the end of the loan, you will own the car and you expect it to be valued at $$10,000.$

$1.$ What is the effective annual interest rate on this loan?

$2.$ What will your monthly payments be$?$

$3.$ What if you could lease it instead, for an APR of $3\mathrm{.}4$ percent, but had to return the car at the end

of the lease. Would you rather buy or lease the car? Why?