Answer:
$ 3934.38 ( approx )
Step-by-step explanation:
Since, the monthly payment formula of a loan,
Where,
PV = present value of loan,
r = annual rate of interest,
n = number of months,
If P = $ 330, r = 1.2% = 0.012,
Number of months in 6 years, n = 12 × 6 = 72
By substituting the values,
Using calculator,
PV ≈ $ 3934.38
Hence, the value of the most expensive car he can afford would be $ 3934.38 ( approx )