Auto loans account for $9\mathrm{.}2\%$ of American consumer debt, and they are one of the most common

debts in households after home mortgages and student loans. Understanding auto loan payments

is an important part of your personal finances.

$1.$ In this assignment, you have decided to purchase a vehicle. Find a vehicle you would consider purchasing. Do research online and find a vehicle that you want to

purchase $($Tesla Model $3).$

a$.$ What is the cost of the vehicle? $($$$42490)$

b$.$ Is the vehicle new or used? $($ new$)$

$2.$ Use the Bank of America Auto Loan Calculator to estimate the cost of monthly loan

payments for the vehicle that you wan to purchase.

a$.$ What would the monthly payment be for a $48$ month loan?

b$.$ What would the monthly payment be for a $60$ month loan?

c$.$ What are the benefits of choosing the smallest number of monthly payments that

you can afford when financing a vehicle?