Henry Has $2,500 for a Down Payment and Thinks He

question 33

Multiple Choice

Henry has $2,500 for a down payment and thinks he can afford monthly payments of $400. If he can finance a vehicle with an 8%, 3-year loan from a local bank, what is the maximum amount Henry can spend on the car? (Round the answer to the nearest dollar.)

• A) $12,765
• B) $14,400
• C) $14,079
• D) $15,265
• E) $16,879

---

Definitions:

Competitive

A state of being in which entities vie against each other to achieve a goal, such as market dominance or winning a contest.

Profit-Maximizing

The process or strategy of adjusting operations and resources to achieve the highest possible profit.

Market Wage

The prevailing wage rate in a labor market for a given skill set, determined by supply and demand forces.

Output Price

The market price at which a final good or service is sold, affecting a firm’s revenue and production decisions.