Barry Wood wants to buy a used car that costs $6,000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 9.5% and requires a 10% down payment. (Round your answers to the nearest cent.)

(a) Find the monthly payment for each loan.

dealer	$
credit union	$

(b) Find the total interest paid for each loan.

dealer	$
credit union	$

(c) Which loan should Barry choose? Why?

He should choose the car dealer add-on interest loan because he pays less interest. He should choose the credit union simple interest loan because he pays less interest.