Barry Wood wants to buy a used car that costs$5,000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at5%and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at9.5%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.

Dick Eckel recently set up a TDA to save for his retirement. He arranged to have$110taken out of each of his biweekly checks; it will earn97

8

%

interest. He just had his twenty-ninth birthday, and his ordinary annuity comes to term when he is 65. Find the following. (Round your answers to the nearest cent.)

(a) The future value of the account

$

(b) Dick's total contribution to the account

$

(c) The total interest

$