Can she afford to buy the car

Reference no: EM132158796

Question: The student in Problem 5-24 really wants this particular car. She decides to try to negotiate a different interest rate. What is the highest interest rate that she can accept, given a 60-month term and $500 per month payments?

Problem: The student in Problem 5-23 finds a car she likes and the dealer offers to arrange financing. His terms are 12% interest for 60 months and no down payment. The car's sticker price is $24,000. Can she afford to buy this car with her $500 monthly disposable income?

Reference no: EM132158796

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