The price of a new car is $32,000. assume that an individual makes a down payment of 8,000 toward the purchase of the car and secures financing at the rate of 7%/year compounded monthly.

(a) what monthly payment will she be required to make if the car is financed over a period of 36 months? over a period of 48 months?

(b) what will the interest charges be if she elects the 36 month plan? the 48 month plan?