please show your work clearly. Thank you! (25 Points) 2. You have decided to...
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please show your work clearly. Thank you!
(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $20,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $550.00. Your loan rate will be 6 percent APR and you will be financing for 7 years (72 monthly payments). What is the maximum amount that you can pay for the car (remember the trade in value of your old car is $20,000)? Financed for 60 months N= 72 TYR = 6% PMT = $550 PVA = ? Hint: Please use the following to determine your maximum loan amount given your maximum monthly loan payment is $550.00: 51-(1+r)-N1 PVA= Payment PVA = Maximum amount that you can pay for the car =
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