Sally Stanford is buying a car that costs $12,000. She will pay $2000 immediately and the remaining $10,000 in four annual end-of-year using constant principal payments. The annual interest is 15%.
a. Prepare a cash flow table to represent this situation.
b. What if the payment method of remaining $10,000 is interest only? Show the cash flow table.
c. Show the cash flow table if the payment method is all at maturity for remaining $10,000.