Lisa has determined that she can afford to spend $575 per month on a vehicle. She also knows that other monthly car-ownership expenses are $60 for gas, $75 for insurance, $30 for maintenance, and $25 for repairs. What is Lisa's maximum monthly car payment affordability?

Question

Quizplus · Accepted Answer

Lisa's total monthly car-ownership expenses excluding the car payment are $60 (gas) + $75 (insurance) + $30 (maintenance) + $25 (repairs) = $190. Therefore, her maximum monthly car payment affordability is $575 (total budget) - $190 (other expenses) = $385.

Lisa Has Determined That She Can Afford to Spend $575