Description Auto loans Most people must take out a loan for a big purchase, such as a car, major appliance, or a house. People who carry a balance on their credit cards are, in effect, also borrowing money. Use the Internet to find the auto loan rates at 3 different banks. Use the formula for compound interest to determine the best interest rate for a new car purchase for a 48-month loan, compounded monthly, with a purchase price of $25,999. Show all calculations in your response