You would like to buy a Harley Davidson and you can afford to make a down payment of $2,000 and pay monthly (end-of-month)payments of $1,320.If the term is 48 months and the loan rate is 9% (APR),then what is the maximum that you can pay for the motorcycle?
A) $55,043.91
B) $53,043.91
C) $51,043.91
D) $41,509.78
E) $42,095.71

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1f_33e2_a768_2d666332198f_TB2902_11 PV = 1,320 × 11ea7fdb_fc1f_33e3_a768_33a58ddb8dee_TB2902_11 = $53,043.91 + 2,000 (down payment) = $55,043.91
Using a financial calculator:
N = 48, I/Y = .75, PMT = -1,320, FV = 0, cpt PV = $53,043.91 + 2,000 (down payment) = $55,043.91

You Would Like to Buy a Harley Davidson and You