You're trying to arrange financing to buy your dream car, which has a sticker price of $798,000. You do not have the full amount in your bank account now so you need to look for a loan company. Company A offers an option with a rate of interest of 6.5%, a term of 60 months and requires a $280,000 down payment on the car. Company B gives you an option with a rate of interest of 7%, a term of 72 months, and requires a $320,000 down payment.

What is the month payment if you choose company A?

What is the monthly payment if you choose company B?

Assume the discount rate is 4.25%. Which company has the better option?