A recent engineering graduate intends to purchase a new car. He plans to pay $2000 down and

Question:

A recent engineering graduate intends to purchase a new car. He plans to pay $2000 down and to finance the balance over a Cyear period. The maximum amount that he can repay each month is $200. What is the most expensive car that he can afford, assuming an interest rate of 12O/0 per year, compounded monthly and continuous compounding?