Suppose that you are thinking about buying a car and have narrowed down your choices to two options.The new-car option: The new car costs

$28,000

and can be financed with a

three-year

loan at

6.74%.

The used-car option: A three-year old model of the same car costs

$13,000

and can be financed with a

five-year

loan at

7.52%.

What is the difference in monthly payments between financing the new car and financing the used car? Use

PMT=Prn11+rnnt.