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Problem 1: Suppose you are interested in purchasing a car from a dealership. However, your budget only allows you to have $375 allocated each month to a car payment for the next 5 years which is scheduled to be at the end of each month. Aside from taking out a loan, you are able to put down $1,200 as a down payment. If the interest rate that you can acquire will be at 6% APR compounded monthly, how much can you afford?

Reference no: EM132809238

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