camiilajakobsen917 camiilajakobsen917

03-04-2024
Mathematics

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A student wanted to buy a car costing $24,000 from a dealer offering 0% down and financing at 6% interest over 60 months. Her disposable income is $500 per month.
(a) What monthly interest rate can she afford? What effective annual rate is this?
(b) Insurance on this car will be $50 per month more than she had planned, which will leave her with only $450 per month for her car payment. Now what monthly interest rate can she afford? What effective annual rate is this?

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