What is the maximum you can afford to spend on the car

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Reference no: EM131012058

You are considering buying a car, and want to take out a loan to help you pay for it. You have $3,000 saved to use as a down payment. Your budget allows you to afford a $300 per month loan payment. You can qualify for a 5% interest rate, and the maximum loan term is five years. What is the maximum you can afford to spend on the car? (Ignore any potential tax, title and licensing costs, although those are real!)

Reference no: EM131012058

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