Melanie can afford a $310-per-month car payment. If she is being offered a 5-year car loan with an APR of 3.0%, compounded month

Question

4 years ago

9

ly, what is the value of the most expensive car she can afford

2 answers:

adell [148] · Answer 1 · 2021-12-15T15:14:51+03:00

6 0

Here is the answer
$17,252.23

sattari [20] · Answer 2 · 2021-12-15T17:25:45+03:00

4 0

Answer:

The most expensive car Melanie can afford is $17287.43

Step-by-step explanation:

The EMI formula is :

$\frac{p*r*(1+r)^{n} }{(1+r)^{n}-1 }$

Here we have to find the p

EMI = 310

r = $\frac{3}{100}$ =0.03 $\frac{0.03}{12}= 0.0025$

n = $5\times12=60$

Putting values in the formula we get,

$310=\frac{p*0.0025*(1.0025)^{60} }{(1+r)^{60}-1 }$

$310=\frac{p*0.0025*1.162}{0.062}$

$50.22=0.002905p$

$p=17287.43$ dollars

The most expensive car Melanie can afford is $17287.43