Question

Courtney would like to buy a new ca in 4 years. It is estimated that a new car will cost her 25,000 and that she will get 13,000 for her used car provided she takes good care of it. Based on these estimates, what is the least amount she should save each month in order to pay cash for her new car?

Answer 1

4 years=48 months

A new car costs 25,000, but she will get 13,000 for her used car as long as she takes good car of it. If she takes good care of her used car and gets 13,000 for it, she will only need to save 12,000 total. We can divide 12,000 by 48 to find out how much Courtney should save minimum each month to afford her new car. 12,000/48=250

You can check to see if this is correct by multiplying 48*250=12,000. Paying 250 for each month of the 48 months will equal the $12,000 that Courtney needs.

Courtney needs to save at least $250 per month to afford her new car in 4 years.

I hope this helps :)