Judy Has $2,000 for a Down Payment on a Vehicle

question 117

Essay

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

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Definitions:

Federal-State Program

A collaborative governance initiative where both federal and state governments share responsibilities and funding to address specific issues.

Poverty Rate

The proportion of the population living below the national poverty line, reflecting the percentage of people with income less than the minimum level necessary to meet basic needs.

Basic Needs

Fundamental requirements that support human survival and well-being, including food, shelter, clothing, healthcare, and education.

Entitlement Programs

Government programs such as social insurance, Medicare, and Medicaid that guarantee (entitle) particular levels of transfer payments or noncash benefits to all who fit the programs’ criteria.