Monthly car payments. Ashley wants to buy a 2014 Nissan Leaf hybrid and finance $20,000 of the cost through a loan. Use the table in Example 3 to answer the following questions.

1.SouthBank will lend Ashley $20,000 at an APR of 5.0% for 7 yr. What will her monthly payment be?

2.Find Ashleys total payments, assuming that she pays the amount found in part (a) every month for the full term of the loan.

3.Valley Credit Union offers a 5-yr term on a loan of $20,000. What is the highest APR that Ashley can accept if she wants to pay less overall than what she would with the loan from SouthBank?

4.If she accepts Valley credit unions offer of a 5-yr term with an APR of 6.5% and makes every monthly payment, how much less overall will she pay?

Monthly Payment per $1000 Borrowed Term, t (in years) Annual Percentage Rate, r 4 5 6 8 $16.10 $16.34 $16.57 $16.81 $17.05 $17.29 $14.13 $14.37 $14.61 $14.85 $15.09 $23.03 $18.87 $19.10 $19.33 $19.57 $19.80 0.05 $12.66 0.055 $23.26 $12.90 $23.49 $23.71 $23.95 $13.14 $13.39 $13.63 0.06 0.065 0.07 0.075 $24.18 $20.04 $15.34 $13.88