Question: A special education teacher is deciding between two options for a car purchase that have a total price of $32,969.31. Option 1 is a

A special education teacher is deciding between two options for a car purchase that have a total price of

A special education teacher is deciding between two options for a car purchase that have a total price of $32,969.31. Option 1 is a 4-year loan at an annual interest rate of 5% compounded monthly. Option 2 is a 5-year loan at an annual interest rate of 4% compounded monthly. Assuming the teacher keeps the car for 5 years, for which option will the total interest paid be less? (Round your answer to the nearest dollar.)

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