Consider a 3-year auto loan from the view of the lender. The lender provides $20,000 to the client at an interest rate of 0.5% per month. (1) How much should the lender receive per month from the client over the next 36 months?
Show cash flow process diagram. (2) If the first payment by the client starts after 3 months, find the payment per month over 36 months. Specify which obtained payment is good for the client option (1) or option (2)?
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