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Suppose you borrow $25000 to buy a car. You will make monthly payments for 5 years with an interest rate of 7% per year compounded monthly?
a) (7 pts.) What is the monthly payment? Round your answer to the nearest cent.
b) (5 pts.) If you could pay an extra $50 per month, how many years will it take to pay off the loan? Round your answer to the nearest hundredth.
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