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 36 months and the loan rate is 9% (APR),then what is the maximum that you can pay for the motorcycle?
A) $43,509.78
B) $41,509.78
C) $39,509.78
D) $40,095.71
E) $42,095.71

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1f_0cd0_a768_498902edbc02_TB2902_11 PV = 1,320 × 11ea7fdb_fc1f_0cd1_a768_73d5044255bd_TB2902_11 = $41,509.78 + 2,000 (down payment) = $43,509.78
Using a financial calculator:
N = 36, I/Y = .75, PMT = -1,320, FV = 0, cpt PV = $41,509.78 + 2,000 (down payment) = $43,509.78

You Would Like to Buy a Harley Davidson and You