Karl can afford car payments of $235 a month for 48 months.The bank will lend him money to buy a car at 7.75 percent interest.How much money can he afford to borrow?

Question

Quizplus · Accepted Answer

The correct answer is A because $9,672.48 is the amount of money that Karl can afford to borrow. This is calculated by using the formula A = P * (1 + r/n)^(nt), where A is the amount of money that Karl can afford to borrow, P is the amount of money that Karl 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. In this case, P = $235, r = 7.75%, n = 12, and t = 4. Plugging these values into the formula, we get A = $9,672.48.

Karl Can Afford Car Payments of $235 a Month for 48