Darla purchased a new car during a special sales promotion bythe manufacturer. She secured a loan from the manufacturer in theamount of $25,000 at a rate of 8%/year compounded monthly. Her bankis now charging 11.3%/year compounded monthly for new car loans.Assuming that each loan would be amortized by 36 equal monthlyinstallments, determine the amount of interest she would have paidat the end of 3 yr for each loan. How much less will she have paidin interest payments over the life of the loan by borrowing fromthe manufacturer instead of her bank? (Round your answers to thenearest cent.)
interest paid to manufacturer?
interest paid to bank?
savings?
