Question 1185594
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A set of clients are seeking car loan financial advice. They are able to make monthly payments of $350 
on a 6-year car loan. You know that the car dealership is able to offer them an annual interest rate of 4%. 
How large of a loan can they get?
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Use the formula for the monthly payment for a loan

    M = {{{L*(r/(1-(1+r)^(-n)))}}}


where L is the loan amount; r = {{{0.04/12}}} is the effective interest rate per month;
n is the number of payments (same as the number of months); M is the monthly payment.


From this formula, the expression for the maximum loan is

    L = {{{M/((r/(1-(1+r)^(-n))))}}}.


In this problem  M = $350;  r = {{{0.04/12}}},  n = 6*12 = 72 monthly payments.


Substitute these values into the formula and get for the maximum loan amount

    L = {{{350/(((0.04/12)/(1-(1+0.04/12)^(-72))))}}} = $22,371.11  (rounded to the closest greater cent).


<U>ANSWER</U>.  The maximum loan amount is $22,371.11.
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Solved.