The student in Problem 5-28 really wants this particular car. She decides to try and negotiate a different interest rate. What is the highest interest rate that she can accept, given a 60-month term and $250 per month payments?
In problem 5-28
His terms are 12% interest for 60 months and no down payment. The car's sticker price is $12,000. Can she afford to purchase this car with her $250 monthly disposable income?