PV AND LOAN ELIGIBILITY
You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 8% APR based on end-of-month payments.
What is the most expensive car you can afford if you finance it
for 48 months? Do not round intermediate calculations. Round your
answer to the nearest cent.
$
What is the most expensive car you can afford if you finance it
for 60 months? Do not round intermediate calculations. Round your
answer to the nearest cent.
$
What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent.
| N | 48 |
| I/Y 8%12 | 0.67% |
| PMT | -350 |
| FV | 0 |
| CPT PV | $14,336.67 |
Expensive car you can afford=14336.67+4000=$18336.67
What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.
| N | 60 |
| I/Y 8%12 | 0.67% |
| PMT | -350 |
| FV | 0 |
| CPT PV | $17,261.45 |
Expensive car you can afford=$17,261.45+4000=$21261.45
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