1. Sharon is considering the purchase of a car. After making the down payment, she will finance $21,880.00. Sharon is offered three maturities. On a four-year loan, Sharon will pay $513.85 per month. On a five-year loan, Sharon's monthly payments will be $423.00. On a six-year loan, they will be $362.61. Sharon rejects the four-year loan, as it is not within her budget. How much interest will Sharon pay over the life of the loan on the five-year loan? How much interest will Sharon pay over the life of the loan on the six-year loan? Which should she choose if she bases her decision solely on total interest paid?

2. Sharon is considering the purchase of a car. After making the down payment, she will finance $18,610. Sharon is offered three maturities. On a four-year loan, Sharon will pay $437.06 per month. On a five-year loan, Sharon's monthly payments will be $359.78. On a six-year loan, they will be $308.42. Sharon rejects the four-year loan, as it is not within her budget. So, Sharon would pay $2,976.80 in interest over the life of the five-year loan. On the six-year loan, Sharon would pay $3,596.24 in interest. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?