+0  
 
+1
191
1
avatar

You are considering buying a car for $25,100. The car dealership charges 2.99% APR compounded monthly on a 60-month loan. If you can afford a monthly payment of $450.00, how much can you borrow? How much do you need for a down payment? Thank you for help.

Guest Nov 10, 2017
 #1
avatar
0

This is the formula you would use to find the amount of loan that you can afford.

PV=P{[1 + R]^N - 1 / [1 + R]^N} / R

PV=450{[1 + 0.0299/12]^60 - 1 / [1 + 0.0299/12]^60} / [0.0299/12]

PV=$450 x                      55.6661234212.........

PV=$25,049.76 - The amount of loan you can afford

$25,100 - $25,049.76 =$50.24 Your down payment on car loan !!.

Guest Nov 11, 2017

7 Online Users

avatar

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.