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. Round your final answer to 2 decimal places.)

Payment

$ per month

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

Payment

$ per month

What would the consequences of such a decision be?

multiple choice

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

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

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

• You would have repaid the loan completely.