You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent.Financed for 48 months: $  Financed for 60 months: $

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Asked Oct 6, 2019
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You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent.

Financed for 48 months: $  

Financed for 60 months: $  

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Expert Answer

Step 1

Computation of the value of car:

Hence, the value of car if financed for 48 months is $22,161.14 and for 60 months is $26,...

А
B
For 60 months
Particulars
For 48 months
1
Number of periods
з АPR
4 Payment
5 Future value
6 Present value
48
60
0.005
0.005
$450.00
$450.00
0
0
$19,161.14
$3,000.00
$22,161.14
$23,276.50
7 Amount saved
$3,000.00
$26,276.50
8 Value of the car
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А B For 60 months Particulars For 48 months 1 Number of periods з АPR 4 Payment 5 Future value 6 Present value 48 60 0.005 0.005 $450.00 $450.00 0 0 $19,161.14 $3,000.00 $22,161.14 $23,276.50 7 Amount saved $3,000.00 $26,276.50 8 Value of the car

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