Buying a Car

You are purchasing a new car for $27,600. The dealership offers you three options:

• 0% financing: 0 down and 0% financing for 48 months.
• Rebate: 0 down. If you choose the rebate, you will need to secure a loan for the balance at your local bank.
• Down payment: Make a down payment of 5% or more and get financing at 1.5% compounded monthly for 48 months: Use the Buying a Car information above to answer this question.

Suppose you make a down payment of 11% of $27,600 and finance the rest at 1.5% compounded monthly for 48 months. How much interest do you pay over the life of the loan?

$ . Round to the nearest dollar.