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In: Advanced Math

The price of a new car is $16,000. Assume that an individual makes a down payment...

The price of a new car is $16,000. 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 7%/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 36 months? Over a period of 72 months?

36 months     $
72 months     $


(b) What will the interest charges be if she elects the 36-month plan? The 72-month plan?

36-month plan     $
72-month plan     $

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