You decide to purchase a new car. After you make a down payment for your new car, you need to finance (borrow) $15,000.

1. Comparing interest rates at various financial institutions, the best interest rate that you find is an APR of 4.5% compounded monthly over 48 months. What is your monthly car payment?

2. How much total interest do you pay over the duration of your 48-month car loan?

3. What would your monthly payment be if you had a 60-month loan at the same APR of 4.5% compounded monthly? How much total interest would you pay over the duration of a 60-month car loan?

4. What mathematical conclusions do you make about a 48-month vs. 60-month car loan?