You wish to purchase a new car in five years and plan to save for the car to avoid incurring debt. You expect the car will cost $26,000 in five years. How much should you contribute into an investment account each MONTH to have the $26,000 in five years, assuming you can earn 8 percent on your investment?

How much would your monthly payments be if you borrowed $26,000 today for the car instead of waiting and saving the money for 5 years. Assume you would repay the loan over 5 years at 8% interest?