Matthew Wants to Take Out a Loan to Buy a Car

question 37

Multiple Choice

Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $4000 per year. If he can get a five-year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?

• A) $21,674
• B) $18,243
• C) $20,324
• D) $16,184

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