Problem
To purchase a new car it is necessary to borrow $18,550. The bank offers a 5-yr loan at an interest rate of 41% compounded annually while the car dealer offers a 6-yr loan at an interest rate of 4% compounded annually If you make only one payment at the end of the loan period repaying the principal and interest
a. For each case, what is the total amount that must be paid back?
b. For each case, how much of the total amount repaid represents interest?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.