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The blue book value of her vehicle

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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: EM131448634

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