Problem:
She's currently accumulated a down payment of $2,000 and she has determined that she can afford maximum payments of $425 per month. Her initial research on the current cost of auto loans has found that her lowest cost loan would be made by a savings and loan association and would require an interest rate of 6% for five years. Given this information, the maximum amount that Beth can afford to pay for her new car is $23,983, and the most expensive car that she can afford to purchase, without stretching her budget, is: The Toyota Camry The Chevy Sonic The Ford Escape Hybrid The Dodge 1500 Pickup However, she could upgrade to a more expensive model by undertaking several activities. Which of the following activities would allow this upgrade? Check all that apply. Go ahead and purchase the more expensive car; she deserves to be happy Take a better-paying job or another, or part-time, job that would give her the additional income to support a larger monthly payment Purchase an upgraded vehicle with fewer and less expensive options Postpone her purchase until she can save more money for a larger down payment