Suppose you purchase a car for a total price of $21,750, including taxes and license fee, and finance that amount for 7 years at an annual interest rate of 6%. (Round your answers to the nearest cent.)(a) Find the monthly payment.$ (b) What is the total amount of interest paid over the term of the loan?$

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Asked Nov 6, 2019
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Suppose you purchase a car for a total price of $21,750, including taxes and license fee, and finance that amount for 7 years at an annual interest rate of 6%. (Round your answers to the nearest cent.)

(a) Find the monthly payment.
$

(b) What is the total amount of interest paid over the term of the loan?
$
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Expert Answer

Step 1

Part A and B:

Calculation of Monthly Payment and Total Interest Paid:

The monthly payment is $317.74 and total interest paid is $4,939.823

Excel Spreadsheet:

...
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