After careful comparison shopping, Bill Withers decides to buy a new Toyota Camry. With some options added, the car has a price of $17,500 - including plates and taxes. Because he can't afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down $6,500. He plans to finance the rest with a $11,000, 48-month loan at a simple interest rate of 8 percent.

1. What will his monthly payments be? Round the answer to the nearest cent. $ per month
2. How much total interest will Bill pay in the first year of the loan? Round the answer to 2 decimal places. (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.) $
3. How much interest will Bill pay over the full (48-month) life of the loan? Round the answer to the nearest cent. $
4. What is the APR on this loan? Round the answer to the nearest cent.

eBook Chapter 7 Financial Planning Exercise 10 Calculating payments, interest, and APR on auto loan After careful comparison shopping, Bill Withers decides to buy a new Toyota Camry. With some options added, the car has a price of $17,500 - including plates and taxes. Because he can't afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down $6,500. He plans to finance the rest with a $11,000, 48-month loan at a simple interest rate of 8 percent. a. What will his monthly payments be? Round the answer to the nearest cent. $ per month b. How much total interest will Bill pay in the first year of the loan? Round the answer to 2 decimal places. (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.) c. How much interest will Bill pay over the full (48-month) life of the loan? Round the answer to the nearest cent. d. What is the APR on this loan? Round the answer to the nearest cent. % %