Using the Web site www.bankrate.com/calculators/auto/auto-loan-calculator.aspx, compute the following information:
a. Assume you purchase an automobile requiring a $30,000 loan at 7% for 48 months. What will be the monthly payment? What will be the total amount that you will pay over the 48 months?
b. Assume the same data as in "a" except for a 60-month loan. What is your monthly payment? What is the total amount that you will pay over the 60 months?
c. Using the same data as in "a," compute the monthly payment assuming a 36-month loan. What is the total amount that you will pay over the 36 months?
d. Which of the three loan periods used in "a," "b," and "c" will result in the lowest monthly payment? Which of the three will result in the lowest total amount paid over the term of the loan?