Financial institutions often offer lower auto loan rates for new cars than used ones. A local credit union advertises new car loans at 2.79% APR and used car loans at 3.29% both for up to 72 months.

Tyresa wants to buy a car but doesnt want to spend more than $350 a month for a maximum of four years. What is the maximum loan amount she can take out for a new car and a used car using the advertised rates?

Use the formula, A=P[(1+rn)nt1]rn(1+rn)ntA=P1+rnnt-1rn1+rnnt where P is the monthly payment, r is the annual interest rate, n is the number times interest is compounded in one year, and t is the number of years. Show all of your steps.