For questions 1 9: A recent university graduate is purchasing a new Honda Civic LX Sedan for $20,345, which includes destination and handling charges. The term of the loan is 5 years (60 months). Payments are made monthly. The interest rate is 5%. The loan is a closed end credit loan. Sales tax is 7% (Indiana) and is included in the loan. Sales tax is owed on the new vehicle price minus the trade-in value. The graduate is trading in their current vehicle, which has a trade-in value of $4,000 and is owned free and clear. The only equity in the transaction is the trade-in vehicle. There currently are no rebate offers or other incentives by Honda on Civics.

If the interest rate was 10% instead of 5%, what is the monthly payment and the total of the monthly payments?

Group of answer choices

$371.59 and $22,295

$432.27 and $25,936

$394.33 and $22,660

$371.59 and $21,992