E-Loan, an online lending service, recently offered 42-month auto loans at 6.6 % compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $ 225, how much can you borrow from E-Loan? What is the total interest you will pay for this loan?
a. To solve the first part of the problem, first use the above formula for the present value of an ordinary annuity since the present value is what could be borrowed.
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