You would like to purchase a $40,000 SUV through financing. You are discussing with the car dealer the different financing options. The dealer suggested you finance the car over 5 years. The interest rate the dealer will charge you is 3% APR compounded monthly. You are unsure whether to finance the car over a 5-year or a 7-year period. You are also unsure whether to make monthly or bi-weekly payments. Your friend has just finished taking the FINA2360 course and came to you with the following questions that might help you in your decision-making process. (All payments happen at the end of the periods)

1. If you go with the 5-year financing, monthly payments option, what will be your monthly payments? (2 pts)
2. If you go with the 7-year financing, monthly payments option, what will be your monthly payments? (1 pts)
3. How much total interest will you pay with the 5-year financing, monthly payments option? (1 pts)
4. How much total interest will you pay with the 7-year financing, monthly payments option? (1 pts)
5. In the event you decided to sell the car after 3 years; how much would you need to pay the financial institution to close your car loan with the 5-year financing, monthly payments option? (1 pts)
6. In the event you decided to sell the car after 3 years, how much would you need to pay the financial institution to close your car loan with the 7-year financing, monthly payments option? (1 pts)
7. If you decide to go with the5-year financing, bi-weekly payments option, what will be your bi-weekly payments? (2 pts)
8. If you decide to go with the 7-year financing, bi-weekly payments option, what will be your bi-weekly payments? (1 pts)

In Excel, present the full amortization table (formulas should be connected) for the below four scenarios:

1. 5 years financing and monthly payments (2 pts)
2. 7 years financing and monthly payments (2 pts)
3. 5 years financing and bi-weekly payments (2 pts)
4. 7 years financing and bi-weekly payments (2 pts)