Interest and Loan CalculationsForthis Assignment you will write an essay to address the requirementsdescribed below.Your essay must be carefully planned and written usingwell-constructedsentences and paragraphs. Make sure that your grammarand spelling are correct.Points will be awarded for content as well ascomposition. Your essay must be aminimum of 1 page in length withstandard 1 inch margins and is required to have at least one referencefrom a reliable source. This means that you cannotuse sites likeWikipedia, Ask.com®, and Yahoo® answers and that only referencesfromreliable sources will earn points. All resources should be cited bothasan in-text citation as well as being listed on a reference page in APAformat.Essay Assignment Your Assignment is to write an essay discussing the financing of a new car for your business. Theprice ofthe used car is $20,000. Sales tax on this car is 8.4% of theprice of thevehicle. You intend to finance the entire cost of the carand sales tax, less adown payment of $1,500. You intend to finance thecar for 48 months and yourcar payment will be $455.12 per month.Your essay should in include the following information1.Calculate and discuss the amount financed, theinstallment price of thenew car, and the finance charges you will pay over thelife of the loan.2.Compare and contrast the advantage of paying cash and financing thevehicle over a shorter period of time, as well as, the impact of findinglower interest rates.3.Research and discuss the advantages of having good credit versus poorcredit when qualifying for a loan. Discuss the implications of yourcredit score on the interest rates you may qualify for.Your essay should be complete and cover each point as outlined above. Be sure to include at least one text citation.