Kathy Stonewall bought a new car for $15,458. A dealer's financing was available through a local bank at an interest rate of 11.5% compounded monthly. Dealer financing required a 10% down payment and 60 equal monthly payments. Because the interest rate was rather high, Kathy checked her credit union for possible financing. The loan officer at the credit union quoted a 9.8% interest rate for a new-car loan and 10.5% for a used car. But to be eligible for the loan, Kathy has to be a member of the union for at least six months. Since she joined the union two months ago, she has to wait four more months to apply for the loan. Consequently, she decided to go ahead with the dealer's financing, and four months later she refinanced the balance through the credit union at an interest rate of 10.5%.
(a) Compute the monthly payment to the dealer.
(b) Compute the monthly payment to the union.
(c) What is the total interest payment on each loan?