Asked by Antonio Duncan
Judy has $2,000 for a down payment on a vehicle, and she can afford monthly payments of $400. If lenders are currently offering 6% interest on 5-year loans, what is the maximum price Judy can pay for a vehicle?
Answers
Answered by
mathhelper
Present value of her affordable value
= 400(1 - 1.005^-60)/.005
= ...
Don't forget to add the $2000 downpayment she already has
= 400(1 - 1.005^-60)/.005
= ...
Don't forget to add the $2000 downpayment she already has