(Solved): Financial Formulas \[ \begin{array}{l} I=P r t \\ P=\text { principal } \\ A=P(1+r t) \\ I=\text { ...

Financial Formulas \[ \begin{array}{l} I=P r t \\ P=\text { principal } \\ A=P(1+r t) \\ I=\text { simple interest } \\ A=P\left(1+\frac{r}{n}\right)^{n t} \\ r=\text { annual interest rate } \\ A=P e^{r t} \\ t=\text { time or term of investment or loan (in years) } \\ A=\frac{M\left[\left(1+\frac{r}{n}\right)^{n t}-1\right]}{\frac{r}{n}} \\ A=\text { future value or amount accumulated } \\ n=\text { number of times interest is compounded per year } \\ M=\frac{P\left(\frac{r}{12}\right)}{1-\left(1+\frac{r}{12}\right)^{-12 t}} \\ e=\text { Euler's number } \\ Y=\left(1+\frac{r}{n}\right)^{n}-1 \\ Y=\text { effective annual interest rate or effective annual yield } \\ M=\text { installment payment or monthly payment } \\ \end{array} \] Chris is taking out an amortized loan for \( \$ 28,000 \) to buy a new car and is deciding between the offers from two lenders. He wants to know which one would be the better deal over the life of the car loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A savings and Ioan association has offered him a 5 -year car loan at an annual interest rate of \( 9.3 \% \). Find the monthly payment. (b) His credit union has offered him a 5-year car loan at an annual interest rate of \( 8.9 \% \). Find the monthly payment. (c) Suppose Chris pays the monthly payment each month for the full term. Which lender's car loan would have the lowest total amount to pay off, and by how much? Savings and loan association The total amount paid would be: less than to the credit union. Credit union The total amount paid would bes less than to the savings and loan association.