Question

Can pls someone explain me this ? Thank you


The Browns’ gross monthly income is $2900. They have 12
remaining payments of $410 on a new car. What maximum monthly
payment does the bank’s loan officer feel that the Browns can afford?


For Further Reading


Maths - drwls, Wednesday, March 19, 2008 at 1:37pm
You would need to know more about their other expenses to answer this question. Are you talking about a bank mortgage loan?



Maths - Mike, Wednesday, March 19, 2008 at 1:40pm
Its the car loan and no other expense is given this is the whole question..

Answer 1

I agree with DrWLS. The question is not answerable as stated.

Is it possible that it refers to some previous information?

Answer 2

Since they have aready been paying off a car loan at $410 per month for about three years, a bank officer considering a new car loan would probably assume they can afford to make similar or slightly higher payments on a new car, assuming they traded in the old one. But first, their credit rating and income sources should be checked.

Answer 3

Thats exactly why I am confused but this is what the question says and there is no additional information about this.. Maybe its a trick question
the answer is $410 only for 12 more months as they are already paying..