document.write( "Question 1122739: You can afford a $350 per month car payment. You've found a 3 year loan at 4% interest. How big of a loan can you afford?. \n" ); document.write( "
Algebra.Com's Answer #738948 by Theo(13342)![]() ![]() You can put this solution on YOUR website! payment at the end of each month is 350. \n" ); document.write( "3 year loan = 36 months. \n" ); document.write( "4% per year compounded monthly is .333333333333.....% per month.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "calculator i used can be found at \r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "inputs are:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "present value = 0 \n" ); document.write( "future value = 0 \n" ); document.write( "number of time periods = 36 months \n" ); document.write( "payment amount = -350 (negative because it's money going out) \n" ); document.write( "interest rate percent per time period = 4/12 = .333333333% per month \n" ); document.write( "payment is made at the end of each time period.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "click on PV and the calculator tells you that the present value of the loan is equal to $11,854.77\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "that value is positive because it's money coming in.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "present value is the amount of money that you can borrow when you pay 350 at the end of each month for 36 months at 4% interest rate per year compounded monthly.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "here's the calculator display.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " ![]() \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |