Calculating payments, interest, and APR on auto loan. After careful comparison shopping, Bill Withers decides to buy a new Toyota Camry. With some options added, the car has a price of...

Calculating payments, interest, and APR on auto loan. After careful comparison shopping, Bill Withers decides to buy a new Toyota Camry. With some options added, the car has a price of
23,558—including plates and taxes. Because he can’t afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down
8,500. Bill plans to finance the rest with a
20,000, 60-month loan at a simple interest rate of 4 percent.

a. What will his monthly payments be?

b. How much total interest will Bill pay in the first year of the loan? (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.)

c. How much interest will Bill pay over the full (60-month) life of the loan?

d. What is the APR on this loan?