Part 2: Your friend is thankful for your calculations and moves her money into savings option #3. With this information, she admits she should have started saving a long time ago. If the Wombat rescue is to become a reality in the near future, she needs to consider taking out a loan. Her bank offers the following loan options.

Loan option #2: Loan term is 48 months, APR 5.50%, loan amount $20,000 (12 pts) This loan is secured, which means her savings account is held as collateral for the loan, and once the loan is paid off, the hold is released outstanding principal balance. For this reason, she needs to borrow the full amount, $20,000. Calculate the following based on these criteria.

a. How much should your friend expect to pay monthly on this loan?

b. How many payments will she have to make before this loan is paid off?

c. How much total interest will she pay over the life of this loan?