Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most $500. If the prevailing interest rate is 4.2%/year compounded monthly for a 48-month loan, what is the most expensive car that Dan can afford, assuming that he will receive $5000 for his trade-in? (Round your answer to the nearest cent.) $

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most $500. If the prevailing interest rate is 4.2%/year compounded monthly for a 48-month loan, what is the most expensive car that Dan can afford, assuming that he will receive $5000 for his trade-in? (Round your answer to the nearest cent.)

 

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