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Suppose that you are planning on buying a new car. If you take out a loan for $28000 at 2.59%, compounded monthly for 5 years:

Suppose that you are planning on buying a new car. If you take out a loan for $28000 at 2.59%, compounded monthly for 5 years: 

(a) How much interest will the loan accrue? 

(b) If the total loan is divided into equal monthly payments, what is the monthly payment?


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