1. A $17,000 car is purchased with a 9%-per-year loan with payments of $300 per month. Determine how many payments must be made to pay off the loan. (Round your answer to the nearest whole number.)

_______ payments

You can lease a 17,000 car for $300 per month. For how long (to the nearest year) should you lease the car so that your total cost is lower than if you were purchasing it with a 9%-per-year loan?

You should lease the car for ________ years or less.

2. While shopping for a car loan, you get the following offers: Solid Savings & Loan is willing to loan you $10,000 at 3% interest for 4 years. Fifth Federal Bank & Trust will loan you the $10,000 at 7% interest for 3 years. Both require monthly payments. You can afford to pay $250 per month. Which loan, if either, can you take?

a) Solid Savings & Loan

b) Fifth Federal Bank & Trust

c) Neither loan