Question

Phil can afford $240 a month for five years for a car loan. If the interest rate is 8.5 percent, how much can he afford to borrow to purchase a car?

Answer 1

Amount that Phil can borrow is $11697.88

Function Arguments PV Rate 8.5%/12 Nper 5 12 Pmt 240 0.007083333 -60 240 number number Fv Type - 11697.88383 Returns the present value of an investment: the total amount that a series of future payments is worth now. is a logical value: payment at the beginning of the period -1; payment at the end of the period 0 or omitted. Type Formula result-$ 11,697.88 Help on this function OK Cancel