document.write( "Question 1206219: You can afford a $300 per month car payment. You've found a 5 year loan at 8% interest.
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Algebra.Com's Answer #843497 by ikleyn(52781) $\"\"$ $\"About$

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document.write( "Use the formula for the monthly payment for a loan\r\n" );
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document.write( "    M = \r\n" );
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document.write( "where P is the loan amount; r =  is the interest rate per month;\r\n" );
document.write( "n is the number of payments (same as the number of months); M is the monthly payment.\r\n" );
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document.write( "From this formula, the expression for the maximum loan is\r\n" );
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document.write( "    P = .\r\n" );
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document.write( "In this problem  M = $300;  r = ,  n = 5*12 = 60 monthly payments.\r\n" );
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document.write( "Substitute these values into the formula and get for the maximim loan amount\r\n" );
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document.write( "    P =  = $14,795.53.\r\n" );
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document.write( "ANSWER.  The maximum loan amount is $14,795.53.\r\n" );
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