Question: Part A) You are purchasing a car with no money down and have borrowed $51,000 at an annual interest rate of 6.3 percent. The terms of the loan require you to pay off the loan by making monthly payments over the next 4 years. What are the payments going to be?
Part B) You are borrowing $33,000 to buy a car. You have a choice of a 36 month loan at an annual interest rate of 7.1 percent or a 60 month loan where the annual interest rate is 0.5 percent higher. If you select the 60 month loan instead of the 36 month loan, how much more total dollars of interest will you pay over the life of the loan?
Part C) You are buying a car and have borrowed $44,000 at an annual interest rate of 6.2 percent. The terms of the loan require you to make monthly payments and to completely amortize the loan over four years. Assuming you make the payments as agreed what is the total amount of interest you will end up up paying over the four years?