1. Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).

A car with a sticker price of $42,200 with factory and dealer rebates of $5,100

(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)

A car with a sticker price of $42,200 with factory and dealer rebates of $5,100

(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)

(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)

(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)

(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.