Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $28,000 and can be financed with a three-year loan at 6.38%. The used-car option: A three-year old model of the same car costs $18,000 and can be financed with a three-year loan at 6.79%. What is the difference in monthly payments between financing the new car and financing the used car? Use PMT= P n [¹-(₁+)] nt …….. The difference in monthly payments between financing the new car and financing the used car is $. (Round to the nearest cent as needed.)

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