SOLUTION: You can afford a $350 per month car payment. You've found a 3 year loan at 7.2% interest. How big of a loan can you afford?

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Question 1149592: You can afford a $350 per month car payment. You've found a 3 year loan at 7.2% interest. How big of a loan can you afford?
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Simple Interest:
+I+=+P%2Ar%2At+
You are given:
+I+%2B+P+=+350%2A12%2A3+
+I+%2B+P+=+12600+
+I+=+12600+-+P+
---------------------
+12600+-+P+=+P%2Ar%2At+
+12600+-+P+=+P%2A.072%2A3+
+12600+-+P+=+.216P+
+1.216P+=+12600+
+P+=+10361.84+
The loan can be as big as $10,361.84
------------------------------------------
check:
+I+=+12600+-+10361.84+
+I+=+2238.16+
and
+I+=+P%2Ar%2At+
+2238.16+=+10361.84%2A.072%2A3+
+2238.16+=+10361.84%2A.216+
+2238.16+=+2238.16+
OK
Get a 2nd opinion if needed

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

You can afford a $350 per month car payment. You've found a 3 year loan at 7.2% interest. How big of a loan can you afford?
Correct answer: highlight_green%28%22%2411%2C301.76%22%29