Loan Interest. Sharon is considering the purchase of a car. After making the down payment,...
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Loan Interest. Sharon is considering the purchase of a car. After making the down payment, she will finance $14,870. Sharon is offered three maturities. On a four-year loan, Sharon will pay $349.22 per month. On a five-year loan, Sharon's monthly payments will be $287.48. On a six-year loan, they will be $246.44. Sharon rejects the four-year loan, as it is not within her budget. So, Sharon would pay $2,378.80 in interest over the life of the five-year loan. On the six-year loan, Sharon would pay $2,873.68 in interest. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan? The interest Sharon would have paid on the four-year loan is $ (Round to the nearest cent.) If Sharon had been able to afford the four-year loan, the amount of interest she would have saved compared to the five-year loan is $ (Round to the nearest cent.)
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