TIME VALUE OF MONEY (TVM) Question 1 PRESENT VALUE AND LOAN ELIGIBILITY You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan would have a 12% annual interest based on end-of-month payments. What is the most expensive car you could afford if you finance it for 48 months? For 60 months? [4 marks]