Question 22.48

18. In December 2010, Kevin Lauterbach, 29, of Coral Springs, Florida, who had “mildly damaged credit,” bought a 2008 Jeep Liberty with no money down and a 72-month loan for $19,000 with a 4.75% rate. (New York Times, February 28, 2011, p. A3).

  1. What would the monthly payment have been?
  2. How much interest would he have paid over the course of the 72 months?
  3. image In fact, he was instead required to make a payment every two weeks. How much was that payment?