Dr. Zoidberg decided to buy a 2019 Tesla Model S P100D Hatchback for $130,000. After paying a down payment and taxes, Dr. Zoidberg can finance the rest of the purchase price with a loan of 100,000 for 5 years at a promotional finance rate of 3% APR compounded quarterly. Please answer the following questions:
a. What is the effecting annual rate changed on this loan?
b. What would be the quarterly payment on this loan?
c. Dr. Zoidberg also discovers that instead of the special promotional rate he can make an additional down payment of $20,000 that would lower his loan amount accordingly (i.e. by $20,000). At what APR would Dr. Zoidberg have the same quarterly payment with this option as with the initial promotional rate of 3%?
d. Dr. Zoidberg finds that he can get 1.5% APR if he elects option (c). What will his quarterly payment be under this option? e. Now assume that that payment frequency changes to annual, preserving the same EAR. What is his payment now? Get Finance homework help today