Question

You can afford a $350 per month car payment. You've found a 3 year loan at 6% interest. How big of a loan can you afford?

Answer 1

Step-by-step explanation:

as I was given we can afford 350/ month. for 3 years it will be 36x350=12,600. this will be out total affordable amount.

P(1+(TR)/100)= 12,600

from here we can solve just by substituting T=3,R=6

Answer 2

Concept Introduction:-

It could take the shape of a word or a numerical representation of a quantity's arithmetic value.

Given Information:-

We have been given that You can afford a $\ 350$ per month car payment. You've found a $3$ year loan at $6\%$ interest.

To Find:-

We have to find that a loan can you afford.

Solution:-

According to the problem

Month one can afford $\ 350$ SO for $3$ years one can afford

$\begin{gathered}3 \times 12 \times 350 \\=\quad 42,00 \times 3 \\=12,600 \ \\P\left(1+\frac{R T}{100}\right)=12,600 \\P\left(1+\frac{3 \times 6}{100}\right)=12,600 \\P=12,600 \times \frac{100}{118} \\=\ 10,677.96 \end{gathered}$

Final Answer:-

One can afford the loan amount is $\ 10,677.96$.

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