Explain can you afford to buy this car under the stated


Suppose you want to buy a new car and have $5,000 available for a down payment and you can afford a monthly car payment of $400. The maximum length of loan you want to take is five years. Your credit rating is not so good and best car loan you can get is for a nominal rate of 6 percent per year, with monthly compounding. The dealer is advertising a non-negotiable all the inclusive deal of $28,000 on the car you have had your eyes on for the last several months. Explain can you afford to buy this car under the stated terms?

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Macroeconomics: Explain can you afford to buy this car under the stated
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