You have saved $3,166 for a down payment on a new car. The monthly payment...
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You have saved $3,166 for a down payment on a new car. The monthly payment you can afford is $354. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.85% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $ [Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments.] Margin of error for correct answers: +/- .05
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