Charlene can afford car payments of $185 a month for 48 months.If the interest rate is 5.65 percent,how much money can she afford to borrow?

Question

Quizplus · Accepted Answer

The correct answer is A because $7,931.44 is the amount of money that Charlene can afford to borrow. This is calculated using the formula A = P * (1 + r/n)^(nt), where A is the amount of money that Charlene can afford to borrow, P is the amount of money that Charlene can afford to pay each month, r is the interest rate, n is the number of times per year that the interest is compounded, and t is the number of years that the loan will be for. In this case, P = $185, r = 5.65%, n = 12, and t = 4. Plugging these values into the formula, we get A = $7,931.44.

Charlene Can Afford Car Payments of $185 a Month for 48