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If You Know That You Can Afford a $500 Per

Question 58

Multiple Choice

If you know that you can afford a $500 per month car payment for the next 48 months, the interest rate is positive and you have found a car dealer who will agree to a zero down payment you will


A) be able to afford a $25,000 car (which is more than $500x48) .
B) be able to afford a $24,000 car (which is exactly $500x48) .
C) be able to afford something less than a $24,000 car.
D) be able to finance a more expensive car when the interest rate is high.

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