How much does your friend still owe on car loan immediately


Problem

A friend of yours just bought a new sports car with a $5,000 down payment, and her $30,000 car loan is financed at an interest rate of 0.75% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $15,000.

a. How much does your friend still owe on the car loan immediately after she makes her 24th payment?

b. Compare your answer to Part (a) to $15,000. This situation is called being "upside down." What can she do about it? Discuss your idea(s) with your instructor.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How much does your friend still owe on car loan immediately
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