3. You purchase a car using a $20,000 loan with a 5% simple interest rate. (a) Suppose you pay the loan off after 4 years. How much interest do you pay on your loan? Show your work. (b) Suppose you

3. You purchase a car using a $20,000 loan with a 5% simple interest rate.

(a) Suppose you pay the loan off after 4 years. How much interest do you pay on your loan? Show your work.

(b) Suppose you pay the loan off after 2 years. How much interest do you pay on your loan? Show your work.

(c) How much interest do you save by paying the loan off sooner? Show your work