453 A recent engineering graduate intends to purchase a new car. He plans to pay $2000 down and to finance the balance over a 4-year 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 12% per year, compounded monthly? Ans. $9595 4.54 Suppose that the engineering graduate of Problem 4.53 can afford to repay $200 a month during the first year, $225 a month during the second year, $250 a month during the third year, and $275 a month during the fourth year. What is the most expensive car he can afford, assuming he pays $2000 down and the interest rate is 12% per year, compounded monthly? Ans. $10878 4.55 Repeat Problem 4.54 for an interest rate of 101% per year, compounded daily. Ans. $1 1094