Blue book value of her vehicle in the marketplace

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A friend of yours just bought a new sports car with a $5,000 down payment, and her $30,000 car loan has an interest rate of .75% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the 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?

Reference no: EM131020988

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