Question

If we do not want to make monthly car payments over $450, up to what amount can I borrow today if r = 3% APR compounded monthly, and the loan requires 60 monthly payments?

Answer 1

$ 25,043.56

Amount to be borrowed is the present value of cash flow which is calculated as follows:
Present Value of monthly cash flow	=pv(rate,nper,pmt,fv)
	= $ 25,043.56
Where,
rate	=	Discount rate	=	3%/12	=	0.0025
nper	=	Time			=	60
pmt	=	Monthly Cash Flow		=	$      -450
fv	=	Maturity Cash Flow		=	0