You have decided to purchase a car. You have found a clean usedcar that will cost you $8,500. You can finance your purchasethrough the dealer at an annual rate of 12% for 24 months. Thedealer requires a down payment of $2,000.
A. What will bethe amount of your monthly payments?
B. How much willyou pay the dealer over the life of the loan?
C. How much of this amount will be interest?
D. If you decidet pay off the loan at the end of the first year, how much will youowe the dealer?