3. a. You want to buy a new car. You can only afford monthly payments of $100. If you want to have your car paid off in 3 years, how much can you afford to borrow (principal) if you can find a loan that has an interest rate of 5 % compounded monthly?

b. What if you want to pay it off in 5 years?

c. What is the difference in the price of the car that you could buy?

d. What if you could afford $200 dollars a month for 3 years?

e. What if you could afford $200 dollars a month for 5 years?

f. What option would you choose and why?