The price of a new car is $16,000. Assume that an individualmakes a down payment of 25% toward the purchase of the car andsecures financing for the balance at the rate of 7%/year compoundedmonthly. (Round your answers to the nearest cent.)
(a) What monthly payment will she be required to make if the caris financed over a period of 36 months? Over a period of 72months?
| 36 months    | $ |
| 72 months    | $ |
(b) What will the interest charges be if she elects the 36-monthplan? The 72-month plan?
| 36-month plan    | $ |
| 72-month plan    | $ |
