You want to purchase a car for $16,000. Two of the loans you are considering are listed below. As is the
case here, it is common that shorter loans have slightly lower interest rates than longer loans. Calculate
the monthly payment and the total amount paid under the terms of each loan.
a. 3-year car loan with an APR of 4.2%
b.
60-month car loan with an APR of 4.7%
i. Monthly payment
(show what you entered into financial
calculator)
i.
(1 pt)
Monthly payment
(show what you entered into financial
calculator)
(1 pt)