1.Now, let's think about a loan that is amortized over a shorter period of time: a car loan. You are trying to decide between buying a new or used car.The used car has relatively low mileage and is in good condition.Both vehicles come with good warranties.You can borrow either $15,000 (new) or $5,000 (used) over 3 years at 6.5% interest.

a.What are your monthly payments if you borrow only $5,000 over 3 years at 6.5% interest for a used car?