You are purchasing a 2020 VW GTI for $24,400, with 20% down. The balance will be financed at 8.4% over seven years with monthly payments. Find:

1. Monthly payment
2. Total interest charges
3. Interest in month three
4. How much interest is saved if you increase monthly payments by $100?
5. Four years later you trade in your car for $12,000, and you must pay off the remaining loan balance when sold. What is your net cash position after selling?

Note: average auto depreciation is almost 50% in three years; VW has average depreciation, with few issues under 100K but many problems later. VW does relatively well on resale due to hip factor, not your parents Ford or Chevy.