Amys Car-Buying Decisions Amy, who lives in Houston, is trying to decide between the following car models : Brand and Model Cost Hyundai Accent $14,195 Mini Cooper 23,450 Jeep Wrangler 26,790 Volvo C70 39,950 Shes currently accumulated a down payment of $3,000 and she has determined that she can afford maximum payments of $575 per month. Her initial research on the current cost of auto loans has found that her lowest cost loan would be made by a bank and would require an interest rate of 12% for four years. Given this information, the maximum amount that Amy can afford to pay for her new car is ____ , and the most expensive car that she can afford to purchase, without stretching her budget, is: The Volvo C70 The Hyundai Accent The Mini Cooper The Jeep Wrangler However, she could upgrade to a more expensive model by undertaking several activities. Which of the following activities would allow this upgrade? Check all that apply. Postpone her purchase until she can save more money for a larger down payment Purchase the more expensive car now and figure out later how to pay for it Go ahead and purchase the more expensive car; she deserves to be happy Take a better-paying job or another, or part-time, job that would give her the additional income to support a larger monthly payment

Amy's Car-Buying Decisions Amy, who lives in Houston, is trying to decide between the following car models: She's currently accumulated a down payment of $3,000 and she has determined that she can afford maximum payments of $575 per month. Her initial research on the current cost of auto loans has found that her lowest cost loan would be made by a bank and would require an interest rate of 12% for four years. Given this information, the maximum amount that Amy can afford to pay for her new car is , and the most expensive car that she can afford to purchase, without stretching her budget, is: The Volvo C70 The Hyundai Accent The Mini Cooper The Jeep Wrangler However, she could upgrade to a more expensive model by undertaking several activities. Which of the following activities would allow this upgrade? Check all that apply. Postpone her purchase until she can save more money for a larger down payment Purchase the more expensive car now and figure out later how to pay for it Go ahead and purchase the more expensive car; she deserves to be happy Take a better-paying job or another, or part-time, job that would give her the additional income to support a larger monthly payment