Problem:
You want to purchase a car that has a selling price of $28,500. You plan to make a down payment of 10% of the purchase price and take a bank loan for the remaining balance.
Required:
Question: What would your monthly payment be on a 5 year loan with an annual interest rate of 1.9%? How much will you have paid on this loan when the loan reaches maturity?
Note: Provide support for rationale.