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Present value and loan eligibility

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PV AND LOAN ELIGIBILITY

You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 8% APR based on end-of-month payments.

What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent.

$  

What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.

$  

Reference no: EM131881230

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