Repaying a Car Loan. Suppose you borrow money to buy a car and must repay $20,000 in interest and principal in 5 years. Your current monthly salary is $4,000. (Related to Application 5 on page 70.) ...

Repaying a Car Loan. Suppose you borrow money to buy a car and must repay $20,000 in interest and principal in 5 years. Your current monthly salary is $4,000. (Related to Application 5 on page 70.)

a. Complete the following table.

b. Which environment has the lowest real cost of repaying the loan?