You would like to buy a Mazda Miata Convertible for a purchase price of $27,500. You will take out a loan for the entire amount. a. You have excellent credit so you can secure a loan at 5% APR for 3 years. What is your monthly payment? How much will you pay in interest if you pay off the loan as scheduled? b. Now suppose instead you want to consider a 5 year loan at 6.5% APR. What is your monthly payment? How much will you pay in interest if you pay off the loan as scheduled? c. Compare the cost of the two loans.
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Use same Eq I used in your 12:38 AM post.
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