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Benjamin has to purchase a new car and wants to finance at most 3/4 of the total cost of the car (purchase price plus interest). The interest rate for financing right now is 1%. If she has $5,000 to put down, what is the most the car can cost (round to the nearest dollar)?

 

A) $2,869

B) $14,423

C) $19,423

D) $24,423

E) $29,869

 Sep 24, 2020
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5000 represents 1/4 of the total cost of the car

   so car + int can cost   20 000

    removing interest   20 000 / (1.01) =  19801.98    I suppose answer C is the closest to true

 Sep 24, 2020

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