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The most expensive car you can purchase is

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You want to buy a new car, but you know that the most you can afford for payments is $ 375 per month. You want 48 month financing, and you can arrange such a loan at 6 percent compounded monthly. You have nothing to trade and no down payment. The most expensive car you can purchase is

(1) an old junker for $ 4,000,

(2) a Honda Civic for $ 10,000,

(3) a Ford Escort for $ 14,000,

(4) a Toyota Camry for $ 17,000, or

(5) an Infiniti G35 for $ 24,000.

Reference no: EM13884539

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