You have saved $2,864 for a down payment on a new car. The monthly payment you can afford is $434. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.55% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $_______________.

[Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments.]

Margin of error for correct answers: +/- .05.