Erika is weighing her options for transportation. She’s narrowed them down to the following: Option A: buying a new car, requiring a loan to finance $18,000 at 1.9% interest compounded monthly over 60...

Erika is weighing her options for transportation.  She’s narrowed them down to the following:

Option A:  buying a new car, requiring a loan to finance $18,000 at 1.9% interest compounded monthly over 60 months.

Option B:  buying a 6-year old, used car, requiring a loan to finance $6,000 at 3.6% interest compounded monthly over 48 months.

The formula for calculating the value of a loan payment is:

1. Calculate Erika’s monthly payment for both options.

1. If you were advising Erika on her options, name
   at least 3
   things other than the monthly payment that she should take into consideration in making her decision.