1 . A student needs to borrow $10,000 to pay for college. She can get the loan at an APR of 8.75% to be paid off in monthly installments over the next 4 years. If she decides to pay the loan off in monthly installments over 3 years instead of 4 years at the given APR, how much money will she save altogether? Round your answer to the nearest cent.)

2. Zero percent financing" means the obvious thingthat no interest is being charged on the loan. So if we borrow $1200 at 0% interest and pay it off over 12 months, our monthly payment will be $1200/12 = $100

Suppose you are buying a new truck at a price of $30,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer financing with 0% interest, or a $3000 rebate on the purchase price. If you take the rebate, you will have to go to the local bank for a loan (of $27,000) at an APR of 6.5%

What would your monthly payment be if you took the rebate? (Round your answer to the nearest cent.) $

What would your monthly payment be if you used dealer financing? (Round your answer to the nearest cent.) $

Should you take the dealer financing or the rebate?

(Assume you take the deal that saves you the most money.) dealer financing rebate How much would you save over the life of the loan by taking the option you chose? (Round your answer to the nearest cent.)