Question: 3 Part Question Jakes Car-Buying Decisions Jake, who lives in St. Louis, is trying to decide between the following car models: Brand and Model Cost

3 Part Question

Jakes Car-Buying Decisions

Jake, who lives in St. Louis, is trying to decide between the following car models:

Hes currently accumulated a down payment of $2,000 and he has determined that he can afford maximum payments of $475 per month. His initial research on the current cost of auto loans has found that his lowest cost loan would be made by a credit union and would require an interest rate of 6% for five years.

Given this information, the maximum amount that Jake can afford to pay for his new car is__________.

A.) $19,928 B.) $30,555 C.) $26,570

The most expensive car that he can afford to purchase, without stretching his budget, is:

A.) The Mini Cooper

B.) The Hyundai Accent

C.) The Jeep Wrangler

D.) The Volvo C70

However, he could upgrade to a more expensive model by undertaking several activities. Which of the following activities would allow this upgrade? Select ALLl that apply.

A.) Take a better-paying job or another, or part-time, job that would give him the additional income to support a larger monthly payment

B.) Postpone his purchase until he can save more money for a larger down payment

C.) Purchase the more expensive car now and figure out later how to pay for it

D.) Purchase an upgraded vehicle with fewer and less expensive options