SOLUTION: You can afford a $200 per month car payment. You've found a 5 year loan at 2% interest. How big of a loan can you afford?

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Question 1167447: You can afford a $200 per month car payment. You've found a 5 year loan at 2% interest. How big of a loan can you afford?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
you can afford monthly payments at the end of each month of 200 dollars.
the loan is for 5 years.
the interest rate is 2%.

you can use a formula to solve this, or you can use a financial calculator.

i prefer the use of a financial calculator.

there is one online that you can use.

it can be found at https://arachnoid.com/finance/index.html

here's what the inputs look like:



here's what the output looks like.



your solution is that the amount of the loan you can afford is 11,410.47.