The price of a new car is $40,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly.

(Round your answers to the nearest cent.)

(a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 48 months?

(b) What will the interest charges be if she elects the 24-month plan? The 48-month plan?