document.write( "Question 1206923: You can afford a $450 per month car payment. You've found a 4 year loan at 3% interest. How big of a loan can you afford?
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Algebra.Com's Answer #844650 by math_tutor2020(3817)\"\" \"About 
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\n" ); document.write( "Monthly payment formula
\n" ); document.write( "P = (L*i)/(1 - (1+i)^(-n))
\n" ); document.write( "where,
\n" ); document.write( "P = monthly payment
\n" ); document.write( "L = loan amount
\n" ); document.write( "i = interest rate per month
\n" ); document.write( "n = number of months\r
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\n" ); document.write( "\n" ); document.write( "When solving for variable L we get
\n" ); document.write( "L = P*(1 - (1+i)^(-n))/i\r
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\n" ); document.write( "\n" ); document.write( "In this case we have these inputs
\n" ); document.write( "P = 450
\n" ); document.write( "i = 0.03/12 = 0.0025
\n" ); document.write( "n = 12*4 = 48\r
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\n" ); document.write( "\n" ); document.write( "So,
\n" ); document.write( "L = P*(1 - (1+i)^(-n))/i
\n" ); document.write( "L = 450*(1 - (1+0.0025)^(-48))/0.0025
\n" ); document.write( "L = 20330.41258572
\n" ); document.write( "L = 20330.41 is the most you can borrow.
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