Bill Anderson buys a car every 2 years as

Chapter , Problem 6-45

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Bill Anderson buys a car every 2 years as follows:initially he makes a down payment of$6000 on a$15,000 car. The balance is paid in 24 equal monthlypayments with annual interest at 12%. When he hasmade the last payment on the loan, he trades in the2-year-old car for $6000 on a new $15,000 car, andthe cycle begins over again.Doug Jones decided on a different purchaseplan. He thought he would be better off if he paid$15,000 cash for a new car. Then he would make amonthly deposit in a savings account so that, at theend of 2 years, he would have $9000 in the account.The $9000 plus the $6000 trade-in value of the carwill allow Doug to replace his 2-year-old car by pay-ing $9000 for a new one. The bank pays 6% interest,compounded quarterly.(a)What is Bill Andersons monthly payment to payoff the loan on the car?(b)After he purchased the new car for cash, howmuch per month should Doug Jones deposit inhis savingsaccountto haveenoughmoney for thenext car 2 years hence?(c)Why is Dougs monthly savings account depositsmaller than Bills payment?