You want to buy a new car and have 5000 available for a, Business Economics

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You want to buy a new car and have 5000 available for a

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

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Business Economics: You want to buy a new car and have 5000 available for a

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