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Sarah Has Saved $3,000 for a Down Payment on a Car

Question 11

Multiple Choice

Sarah has saved $3,000 for a down payment on a car. She has determined that she can afford a monthly payment up to $350 per month for an auto loan. Her credit union has quoted her a 6% rate on a 60-month car loan. What is the maximum amount Sarah can afford to finance? (Round to the nearest $100.)


A) $14,900
B) $17,900
C) $18,100
D) $21,100

Correct Answer:

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