CHALLENGE QUESTIONS 1. Cory and Tisha found a used car that costs $12 000. They can finance through their bank at an interest rate of 8 percent interest for a maximum of 48 months. The rate for new car financing is 7.50 percent for 60 months or 7.35 percent for 48 months. All interest rates are compounded monthly. Would they save any money in interest charges if they could find a comparably priced new vehicle, and if they finance the new vehicle for 48 months or 60 months? 2. Ibrahim wants a new big-screen TV and Dolby digital stereo. He figures the system will cost $3000. The store will finance up to $2500 for 2 years at a 10.5 percent interest rate, compounded monthly. Assuming Ibrahim accepted the store's financing, how much would he have saved in total interest if he had increased his down payment to $1000? 1 of 1