A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of USD 15,000 per month for all of his wants. Given his budget, the gamer can afford to buy a gaming laptop for a down payment of USD 8,000 and a monthly annuity with a value not exceeding 40% of his "WANTS Budget". If the gaming laptop seller agrees to the down payment value, and the balance payable in 5 years at 20% per year payable on a monthly basis, what is the maximum price of the gaming laptop he can afford to purchase?

A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of USD 15,000 per month for all of his wants. Given his budget, the gamer can afford to buy a gaming laptop for a down payment of USD 8,000 and a monthly annuity with a value not exceeding 40% of his "WANTS Budget". If the gaming laptop seller agrees to the down payment value, and the balance payable in 5 years at 20% per year payable on a monthly basis, what is the maximum price of the gaming laptop he can afford to purchase?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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