Question: A friend of yours just bought a new sports car with a $5,000 down payment, and her $30,000 car loan is financed at an interest rate of 0.75% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $15,000.
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 $15,000. This situation is called being "upside down." What can she do about it? Discuss your idea(s) with your instructor.