Answer: travis can afford the compact car but not the coupe
Step-by-step explanation:
Answer:
Travis can afford the compact car.
Step-by-step explanation:
The EMI formula is :
[tex]\frac{p*r*(1+r)^{n} }{(1+r)^{n}-1 }[/tex]
In first case:
p = 10800
r = 6/12/100=0.005
n = 4*12 = 48
Putting values in the formula we get:
[tex]\frac{10800*0.005*(1+0.005)^{48} }{(1+0.005)^{48}-1 }[/tex]
= $254
We can see that Travis can afford the compact car because the EMI is less than $260.
In second case:
p = 11300
r = 6/12/100=0.005
n = 4*12 = 48
Putting values in the formula we get:
[tex]\frac{11300*0.005*(1+0.005)^{48} }{(1+0.005)^{48}-1 }[/tex]
= $265.75
We can see that the coupe will have an EMI of $265.75 which is higher than the amount that Travis can afford.
Hence, Travis can afford a compact car.
