You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

What would the consequences of such a decision be?

multiple choice

• A)You would have repaid the loan completely.

• B) You would owe $25,000 at the end of the 48 months.

• C) You would owe $9,999.84 at the end of the 48 months.

• D)You would have paid $30,434.88 at the end of the 48 months.