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You're considering taking out a loan to purchase a new car. The cost of the vehicle is $40,000. The dealership is offering a loan that

  1. You're considering taking out a loan to purchase a new car. The cost of the vehicle is $40,000. The dealership is offering a loan that requires monthly payments with a term of 48 months, no down payment, and an interest rate of 3.5% APR (monthly compounding).
    You may assume your first payment is due 1 month from today. 

  3. What is the monthly payment associated with this loan?

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