Respuesta :
Answer:
$ 3934.38 ( approx )
Step-by-step explanation:
Since, the monthly payment formula of a loan,
[tex]P=\frac{PV(\frac{r}{12})}{1-(1+\frac{r}{12})^{-n}}[/tex]
Where,
PV = present value of loan,
r = annual rate of interest,
n = number of months,
If P = $ 330, r = 1.2% = 0.012,
Number of months in 6 years, n = 12 × 6 = 72
By substituting the values,
[tex]330 = \frac{PV(\frac{0.012}{12})}{1-(1+\frac{0.012}{12})^{-72}}[/tex]
[tex]330 =\frac{PV(0.001)}{1-(1.001)^{-12}}[/tex]
[tex]\implies PV = 330\times \frac{1-(1.001)^{-12}}{(0.001)}[/tex]
Using calculator,
PV ≈ $ 3934.38
Hence, the value of the most expensive car he can afford would be $ 3934.38 ( approx )
