Question
1.You can get a car loan with a term of three years at an APR of 3%. If you can afford a monthly payment of
1.You can get a car loan with a term of three years at an APR of 3%. If you can afford a monthly payment of $250, how much can you borrow? (Round your answer to the nearest cent.)
2.You find that the going rate for a home mortgage with a term of 30 years is 5% APR. The lending agency says that based on your income, your monthly payment can be at most $740. How much can you borrow? (Round your answer to the nearest cent.)
3.Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 9.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)
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