You have bought a new car that requires a loan of $25,000 to pay for it. The car dealer offers you two alternatives on the loan: a) Monthly payments for 3 years, starting one month after purchase, with an interest rate of 8% compounded monthly, or b) Monthly payments for 5 years, also starting one month after purchase, with interest rate of 10%, compounded monthly. Find your monthly payment, the total amount paid over the course of the repayment period under each of the two options and the alternative on the loan that you pay the least amount for the car. You have bought a new car that requires a loan of $25,000 to pay for it. The car dealer offers you two alternatives on the loan: a) Monthly payments for 3 years, starting one month after purchase, with an interest rate of 8% compounded monthly, or b) Monthly payments for 5 years, also starting one month after purchase, with interest rate of 10%, compounded monthly. Find your monthly payment, the total amount paid over the course of the repayment period under each of the two options and the alternative on the loan that you pay the least amount for the car