Sarah can afford car payments of $271 a month for 48 months.

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Sarah can afford car payments of $271 a month for 48 months.

Sarah can afford car payments of $271 a month for 48 months. The bank will lend her money to buy a car at 6 % APR compounded monthly (05 % per month). How much money can she afford to below?

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Answer 1

Answer #1

Loan Amount = Instalment * PVAF (r%, n)

= $271 * PVAF (0.5%, 48)

= $ 271 * 42.5803

= $ 11,539.27

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Answer 2

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Sarah can afford car payments of $271 a month for 48 months.

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Sarah can afford car payments of $271 a month for 48 months.

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