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# You have found a car of your dreams. It is dark blue and has DVD player. In addition, as a bonus, it has four wheels and is capable of moving from one point to another. You are excited. However, the car is pricy. Your \$4500, all the money you currently have, are not enough to buy the car. It’s price is \$27 000. You have to take a loan. In the dealership they offer you the best (and the only) loan they have: 5 year loan with 7.5% APR, fixed monthly payments and small application fee in the amount of 3% of the loan. Of course, you have to pay dealer’s fees in the amount \$750 and title/license/tax \$357. Also, you want to have \$500 in cash for emergency for coming weeks. You want everything else to go to the downpayment for the car. A. How much you need to borrow? B. What is your downpayment? C. What are your monthly payments? D. How much more you need to pay in monthly payments in order to pay your loan in four years? STATE the appropriate method of solution, tell us why you may use it and give the complete analysis.

You have found a car of your dreams. It is dark blue and has DVD player. In addition, as a bonus, it has four wheels and is capable of moving from one point to another. You are excited. However, the car is pricy. Your \$4500, all the money you currently have, are not enough to buy the car. It’s price is \$27 000. You have to take a loan. In the dealership they offer you the best (and the only) loan they have: 5 year loan with 7.5% APR, fixed monthly payments and small application fee in the amount of 3% of the loan. Of course, you have to pay dealer’s fees in the amount \$750 and title/license/tax \$357. Also, you want to have \$500 in cash for emergency for coming weeks. You want everything else to go to the downpayment for the car.

A. How much you need to borrow?