posted by .

You want to buy a car but the price of $22000 is a bit steep. You are willing to put down $3000 and finance it over 5 years; however, you are restricted to no more than $325 per month. The interest rate is 6% per year. What is the price you can afford to pay for the car?

  • Albebra -

    what is the present value of 325 for 60 months, at a period interest rate of 6/12 ?
    Add 3000 dollars.

    I get slightly less than 20,000

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. business

    As part of your financial planning, you wish to purchase a new cat exactly 5 years from today. The car you wish to purchase coasts $14,000, and your research indicates that its price will increase by 2% to 4% per year over the next …
  2. math

    Ed buys a car on credit . He makes a down payment of $1,500 and pays $250 per month for 36 months. What is the finance charge if the cash price on the car is $9,500
  3. Finance

    Sam wants to buy a car for $35000. How much does she need to put into an account earning 7% to buy the car in 5 years?
  4. Finance Math

    Jane made a down payment of 1500 dollars toward the purchase of a car. To pay the balance of the purchase price, she has secured a loan from her bank at the nominal rate of 5.8 percent per year compounded monthly. Under the terms of …
  5. Finance

    Debbie Snyder has just graduated from college and needs to buy a car to commute to work. She estimates that she can afford to pay about $ 450 per month for a loan or lease and has about $ 2,000 in savings to use for a down payment. …
  6. math

    George makes a $1000 down payment for a car and then pays $325 per month. Elaine makes a $2500 down payment for a car and then pays $325 per month. Is there any number of months after which both George and Elaine will have paid the …
  7. Finance

    After deciding to buy a new car, you can either lease the car or purchase it on a 3-year loan. The car costs $32,000. The lease offer is for $450/month for 36 months, with only $99 due up front. If you buy the car with a 3-year loan, …
  8. Algebra

    Jane agrees to buy a car for a down payment of $4000 and payments of $260 per month for 9 years. If the interest rate is 9% per year, compounded monthly, what is the actual purchase price of her car?
  9. Finance

    Rob and laura wish to buy a new home. The price is $187,500 and they plan to put down 20%. CIBC will lend them at a fixed rate for 25 years with monthly payments. How much will Bob and Laura's monthly payment be?
  10. Math

    Ed's new pickup cost $3000 down and $265 per month for 6 years. What is its total price?

More Similar Questions