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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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