The time t, measured in months, is the length of the loan. For example, a 30-year loan requires 1230=360 monthly payments. P=L[1(1+12r)t12r]P=monthlypaymentL=loanamountr=annualrateofinterestexpressedasadecimalt=lengthofloan,inmonths 1. Interest rates change daily. Many websites post current interest rates on loans. Go to www.bankrate.com (or some other website that posts lenders' interest rates) and find the current best interest rate on a 60 -month new-car purchase loan. Use this rate to determine the monthly payment on a $30,000 automobile loan. 2. Determine the total amount paid for the loan by multiplying the loan payment by the term of the loan. 3. Determine the total amount of interest paid by subtracting the loan amount from the total amount paid from question 2. 4. More often than not, we decide how much of a payment we can afford and use that information to determine the loan amount. Suppose you can afford a monthly payment of $500. Use the interest rate from question 1 to determine the maximum amount you can borrow. If you have $5000 to put down on the car, what is the maximum value of a car you can purchase? 5. Repeat questions 1 through 4 using a 72 -month new-ear purchase loan, a 60 -month used-car purchase loan, and a 72-month used-car purchase loan