You are interested in purchasing an automobile but you require financing. The dealer has provided you with several loan options to finance the purchase. Your market
Loan 1: loan has a term of 60 months, a contractual rate of interest of 8% and requires a down payment of $1500 for the purchase of the car. The loan allows you to claim a rebate of $1000 on the car at purchase.
Loan 2: The loan has a term of 72 months, a contractual rate of 7.5% and requires a down payment of $500 for the purchase of the car. The loan allows you to claim a $500 rebate
Loan 3: The loan has a term of 36 months a contractual interest rate of 0% and requires $4000 down. No rebate is available for this option.
What is the monthly payment for loan 2 (rounded to the nearest whole dollar)?
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