Mr. Two can afford car payments of $235 a month for 48 months. The bank will lend him money to buy a car at 7.75 per cent interest. How much money can he afford to borrow?

Answer 1

http://www.investopedia.com/calculator/pvcal.aspx
time period 48
interest rate: 7.75/12
future value: 235

Answer 2

present value = 235( 1 - (1+.0775/12)^-48)/(.0775/12)
= $9672.48

Answer 3

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