You want to by a boat and can afford payments of $350 per month for six years. The monthly interest rate is 0.5%. (a) What is the maximum you can spend on the boat if there is no down payment? (b) What is the maximum you can spend on the boat if you make a down payment of $6000 at the time of purchase?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You want to by a boat and can afford payments of $350 per month for six years. The monthly interest rate is 0.5%.

(a) What is the maximum you can spend on the boat if there is no down payment?

(b) What is the maximum you can spend on the boat if you make a down payment of $6000 at the time of purchase? 

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