You just got a new part-time job and you need to buy a new car for your job. Suppose you have enough savings to pay the downpayment and you can only afford to pay $400 a month starting one month from now. Suppose your car dealer offers you a car loan with an annual interest rate of 6 %, how much will you be able to borrow for the new car today if you finance the amount over 5 years?

Answer rating: 100% (QA)

To calculate how much you can borrow for the new car well use the formula for calculating the loan a... View the full answer