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You are purchasing a 2015 Chrysler 200 for $19,400, with20% down. The balance will be financed at 7.6% over seven yearswith monthly payments. Find:Monthly paymentTotal interest chargesInterest in month threeHow much interest is saved if you increase monthly payments by$50?Five years later you sell for $5,000, and you must pay off theremaining loan balance when sold. What is your net cash positionafter selling?Note: average auto depreciation isalmost 50% in three years; Chrysler has poorest resale of alldomestic manufacturers.A few hints:Be exact with your PMT. Don't round. Over many time periods, itresults in significant imprecision.For monthly interest, #1 -- find PMT, #2 -- find interest bymultiplying principal x rate x time (1/12 of a year). #3 --subtract interest from payment. #4 -- difference is principalreduction for the 1st month. #5 -- subtract #4 from originalprincipal balance, then repeat step 2.Use a finance calculator or Excel. No tables. Avoidmodeling...imprecision and errors are common.