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 7.75%.The used-car option: A three-year old model of the same car costs $18,000 and can be financed with a five-year loan at 7.08%. What is the difference in monthly payments between financing the new car and financing the used car? \text { Use PMT }=\frac{P\left(\frac{r}{n}\right)}{1-\left(1+\frac{r}{n}\right)^{-n t}}