Financed at an interest rate

Reference no: EM13692593

A friend of yours just bought a new sports car with a $4500 down payment, and her $27000 car loan is financed at an interest rate of 0.50% per month for 48 months. after 2 years, the "blue book" value of her vehicle in the used car marketplace is $13000.

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 $13000. This situation is called being "upside down". What can she do about it?

Reference no: EM13692593

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