You need an automobile loan of $19,500 after the trade-in and down payment. You are trying to

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Question:

You need an automobile loan of $19,500 after the trade-in and down payment. You are trying to decide between two choices.

a. Receive a loan and pay 1.75% APR for 36 months through the dealership. Find the monthly payment and the total amount paid.
b. Pay cash to receive a $2500 discount and obtain a loan for the difference at a bank at 6.5% APR for 36 months. Find the monthly payment and the total amount paid.