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The price of a new car is $20,000. 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 6%/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 48 months? Over a period of 72 months?
48 months $ 72 months $
(b) What will the interest charges be if she elects the 48-month plan? The 72-month plan?
48-month plan $ 72-month plan $
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