Time remaining: 00:09:32EconomicsA common purchase soon after graduation is a new car. For this study, we want to consider the effectsof interest rate on the loan vs. discounts. You will need to research two items for this study: Thesticker price, or MSRP, for the car – this can be found online or at any dealer lot. Select a car that looksappealing to you, not necessarily the car you expect to buy. The typical interest rate for car loansthis can be advertised rate from the dealer, bank, or credit union you want to be prepared for theinevitable negotiations when buying the car. You know the salesman will come up with a choice of theform I'll give you $1,000 off the sticker price or 0.5% off the financing interest rate. You can also expecta lot of pressure to buy now instead of leaving and coming back. You are also considering either a 4year (48 month) or 6 year (72 month) loan. What you need to bring is a tool to help you make thedecision. For discounts that can be from 4% to 15% of the MSRP (sticker price), what is the equivalentinterest rate discount? In short, when the dealer tells you $1,000 off or 0.5% of the interest, you canuse your tool to decide which is better for you. The tool you will create for this project is one sheet ofpaper, one side of an 8.5x11 sheet of plane paper. Put whatever graphs, tables, or text will help youmake the decision. You will not have time to pull out a calculator at the dealership, so make the tooleasy to use. For the discounts, put them in terms of S amounts rather than percentages (rounding the4% to 15% is expected). Remember, you need to be able to handle 4 or 6-year loans. For your report,provide a short description of the car and loan, including where you go the information. Include adescription of how to use the tool, and how any calculations were made. This should be brief. Thenprovide the tool itself. Again, the tool MUST be able to fit on one side of a letter size paper. Notes:You can assume any discounts will be in round numbers ($500, not $501.25) • Assume interest iscompounded at the end of each month. Interest rates will come in increments of 0.05%AnswerSkipExit​