Question

You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. . If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum price o. How much can you afford if you finance the purchase over 60 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum price

Answer 1

1)

a)

Maximum price is $33,477.87 ($32,277.87+$1,200)

b)

Maximum price is $39,411.78 ($38,211.78+$1,200)