1. Ima Saver has $19702 in cash. She plans to but a new car in five...

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Finance

1. Ima Saver has $19702 in cash. She plans to but a new car infive years. Ima is highly certain that the car will cost $25702.Ima is shopping around for a bank at which to save for the nextfive years. What nominal annual interest rate must the bank offerfor Ima to be able to afford the car, assuming that she depositsher cash today in the account?
Assume annual compounding. Also assume that the bank accountsare federally insured so that there is no risk of loss.
Express your answer in percent, and round your answer to threedecimal places. Do not type the % symbol.
2. Suppose that you own a local auto dealership, Carmen andRodrigo’s Sales (CARS). Your dealership will finance a new carpurchase at an APR of 14%, compounded monthly. The terms of thefinancing are monthly payments of $432 for five years. The firstpayment is due one month after the buyer purchases the vehicle.
How much of the purchase price would the buyer be financing withthe loan from your dealership?
Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. Do not type the $ symbol or aminus sign.

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1. Ima Saver has $19702 in cash. She plans to but a new car infive years. Ima is highly certain that the car will cost $25702.Ima is shopping around for a bank at which to save for the nextfive years. What nominal annual interest rate must the bank offerfor Ima to be able to afford the car, assuming that she depositsher cash today in the account?Assume annual compounding. Also assume that the bank accountsare federally insured so that there is no risk of loss.Express your answer in percent, and round your answer to threedecimal places. Do not type the % symbol.2. Suppose that you own a local auto dealership, Carmen andRodrigo’s Sales (CARS). Your dealership will finance a new carpurchase at an APR of 14%, compounded monthly. The terms of thefinancing are monthly payments of $432 for five years. The firstpayment is due one month after the buyer purchases the vehicle.How much of the purchase price would the buyer be financing withthe loan from your dealership?Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. Do not type the $ symbol or aminus sign.