You Can Afford to Make Monthly Payments of $400 for 60

question 28

Multiple Choice

You can afford to make monthly payments of $400 for 60 months to buy a new car. Assuming you can borrow at 6% per year interest, how would you figure out how much money you can borrow?

• A) Ask your dad
• B) Use present value of an annuity calculation
• C) Use future value of annuity calculation
• D) Not enough information given to determine answer

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