Question

PV AND LOAN ELIGIBILITY You have saved \$4,000 for a down payment on a new car....

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