Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.

You can get a car loan with a term of three years at an APR of 5%. If you can afford a monthly payment of $450, how much can you borrow? (Round your answer to the nearest cent.)
$

Answer 1

Answer:

15014.57

Step-by-step explanation:

effective rate: .05/12= .004166667

$450*\frac{1-(1+.004166667)^{-36}}{.004166667}=15014.5655$

Answer 2

Step-by-step explanation:

15014.57

Step-by-step explanation:

effective rate: .05/12= .004166667

450*\frac{1-(1+.004166667)^{-36}}{.004166667}=15014.5655450∗

.004166667

1−(1+.004166667)

−36

=15014.5655