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The price of a new car is $40,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to the nearest cent.)
(a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 60 months?
24 months
60 months
(b) What will the interest charges be if she elects the 24-month plan? The 60-month plan?
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