SOLUTION: hi, can you please help me find the answer for this question? if you want to buy a car, and you can afford a monthly payment of $100, how large of a loan can you get at 3.15% inte

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Question 1131199: hi, can you please help me find the answer for this question?
if you want to buy a car, and you can afford a monthly payment of $100, how large of a loan can you get at 3.15% interest over 30 months(2.5 years)?
Round your answer to the nearest dollar.
$
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
you can afford a monthly payment of $100, how large of a loan can you get at 3.15% interest over 30 months(2.5 years)?
:
We can use the formula:
= 100
where
P = the amt borrowed
r = interest in decimal form .0315
n = no. of payments per year 12
t = no. of years 2.5
:
= 100
:
%28P%28%281.002625%29%5E30%29%28.002625%29%29%2F%28%281.002625%29%5E30-1%29 = 100
:
%28P%281.0818%29%28.002625%29%29%2F%28%281.0818%29-1%29%29 = 100
:
%28P%28.00284%29%29%2F.0818%29= 100
:
.0347P = 100
P = 100%2F.0347
P = $2882 is the price of a car you can buy for $100 a month