Question: eBook Problem 7 - 3 2 You are buying a car. You can afford $ 2 0 0 per month and don't want to have

eBook

Problem

7 - 32

You are buying a car. You can afford $

200

per month and don't want to have payments for more than

6

years. At the end of the loan repayment period, your balance will be zero years. If the annual interest rate is

5

percent, but with monthly compounding and monthly payments, what is the most you can borrow today? Use Appendix D to answer the question. Round your answer to the nearest dollar.

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