Interest on Purchases

After reviewing the readings for Week 2, please complete the following written assignment. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 38 months? For 60 months? Explain the steps used to solve this problem, using as many of the terms covered in your readings as possible. Be sure to define these terms. Explain all your answers in detail.