Question: Chapter 7 Financial Planning Exercise 8 Calculating payments, interest, and APR on auto loan After careful comparison shopping, Isabella Green decides to buy a new

Chapter 7 Financial Planning Exercise 8 Calculating payments, interest, and APR on auto loan

After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $21,000 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $8,000. She plans to finance the rest with a $13,000, 48-month loan at a simple interest rate of 12.5 percent.

What will her monthly payments be? Round the answer to the nearest cent. $ per month ______________________________

How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent. $ _________________________________

How much interest will Isabella pay over the full (48-month) life of the loan? Round the answer to the nearest cent. $ ___________________________________

What is the APR on this loan? Round the answer to 1 decimal place. % ____________________________________

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