On April 1, 2021, you will buy a new car that costs $33,000. You will pay $6,000 down and you will finance the rest with a bank at a rate of 4.8% APR compounded monthly (0.40% monthly). The term of the car loan is 5 years, payments are made monthly, and all payments are due at the end of the month. Ignore taxes.

(a) What is your monthly car payment?

(b) If you could spend $45 more per month on your car payment, how much more money could you borrow today?

Answer rating: 100% (QA)

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