At the end of your university studies you are so overjoyed that you decide to buy a car. You can choose between four cars which have different prices (see answer choices). You want to borrow the money to buy the car, but you can only pay 570 pounds on a monthly basis. If you agree to make monthly payments for 8 years (with the first payment one month from the purchase date), you expect that the interest rates will be constant over the upcoming period, and that the annual interest rate with monthly compounding is 2.3%. 

What is the most expensive car that you can buy with this loan today

Answer rating: 100% (QA)

To determine the most expensive car you can buy with a loan of 570 per month for 8 years at an annua... View the full answer