You decide to save money to purchase an automobile. You save $1,500 and the total cost of the
new automobile is $27,890. The dealership offers to loan you the remaining amount, in order to
purchase the automobile, at 5.25% annual interest for 66 months.
3. What is the principal of the loan?
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4. What is the total amount of interest that you will have paid on the loan when the
automobile is paid off?
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