How much interest will you pay over the life of each loan

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You are interested in purchasing a car. After making the down payment, you will finance $15,500. You are offered two maturities. On a four-year loan, you will pay $371.17 per month. On a five-year loan, your monthly payments will be $306.99.

How much interest will you pay over the life of each loan?

Which should you choose? Why?

Reference no: EM131318770

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