Brenda can afford a $565-per-month automobile payment, and she's interested in either a pickup truck, which...

Transcribed Image Text:

Brenda can afford a $565-per-month automobile payment, and she's interested in either a pickup truck, which costs $28,100, or an SUV, which costs $28,500. She's being offered a 5- year loan with an APR of 7.2%, compounded monthly. Help Brenda figure out which of the vehicles she can afford. (5 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV- 1 point; Part V-1 point) Part I: What is the periodic interest rate of the loan that Brenda is being offered? 7.2%/12 = 0.6% leed the answer? 2976 tutors online. Answers in as fast as 15 minutes. Get it-with an explanation Part II: How many total payments does the loan that Brenda is being offered require? 5x12=60 Need the answer? 2976 tutors online. Answers in as fast as 15 minutes. Get it-with an explanation Part III: What is the largest amount of money that Brenda can afford to borrow? A Pr (1+r)^n/(1+r)^n-1 A=Monthly payment per period = 565 Brenda can afford a $565-per-month automobile payment, and she's interested in either a pickup truck, which costs $28,100, or an SUV, which costs $28,500. She's being offered a 5- year loan with an APR of 7.2%, compounded monthly. Help Brenda figure out which of the vehicles she can afford. (5 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV- 1 point; Part V-1 point) Part I: What is the periodic interest rate of the loan that Brenda is being offered? 7.2%/12 = 0.6% leed the answer? 2976 tutors online. Answers in as fast as 15 minutes. Get it-with an explanation Part II: How many total payments does the loan that Brenda is being offered require? 5x12=60 Need the answer? 2976 tutors online. Answers in as fast as 15 minutes. Get it-with an explanation Part III: What is the largest amount of money that Brenda can afford to borrow? A Pr (1+r)^n/(1+r)^n-1 A=Monthly payment per period = 565

Answer rating: 100% (QA)

Part I What is the periodic interest rate of the loan that Brenda is being offered The annual i... View the full answer