You are interested in buying a new car, and you can put $2,000 down. Given your credit score, you can finance the rest at 5.99% APR, compounded monthly. Since it is a new car, you can get 7-year financing. You believe you can afford to pay $250 a month. What is the maximum “amount of car” you can afford given these conditions?

Same conditions as above, but you want to buy a car that costs $35,425. What would be your monthly payment?

Answer rating: 100% (QA)

To calculate the maximum amount of car you can afford we need to determine the present value of the ... View the full answer