Question
Emma, who lives in Houston, is trying to decide between the following car models: Brand and Model Cost Kia Rio $12,295 Jeep Patriot 16,780 Chevrolet
Emma, who lives in Houston, is trying to decide between the following car models:
Brand and Model | Cost |
---|---|
Kia Rio | $12,295 |
Jeep Patriot | 16,780 |
Chevrolet Camaro | 26,305 |
Ford F-150 Pickup | 27,690 |
Shes currently accumulated a down payment of $5,000 and she has determined that she can afford maximum payments of $375 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 Emma can afford to pay for her new car is ($14,430 or $22,126 or $19,240), and the most expensive car that she can afford to purchase, without stretching her budget, is:
A. Emma shouldnt buy a car at this time due to her limited budget
B.The Chevrolet Camaro
C. The Ford F-150 Pickup
D. The Kia Rio
E. The Jeep Patriot
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