Help 10 ​

Here's what I get, NSS

For a new car

P = 350

r = .0279/12

n = 72

A =  350 [ (1 + .0279/12)^72 - 1 ] / [(.0279/12) ( 1 + .0279/12)^72 ] ≈ $ 23,178.95

For a used car only  r is different....it is   (.0329/12)

So we have

 350 [ (1 + .0329/12)^72 - 1 ] / [(.0329/12) ( 1 + .0329/12)^72 ] ≈  $ 22,840.34

CPhill: You made a small error in that Tyresa "wants to buy a car but doesn't want to spend more than $350 a month FOR A MAXIMUM OF FOUR YEARS". That is the term is for 48 months. The rates offered by the bank are for UP TO 72 MONTHS.

At any rate, here are the amounts worked out for 48 MONTHS:

1) Maximum amount to borrow for a new car @ 2.79%, $350 per month, for 4 years or 48 months.

The amount =$15,879.04. Use the formula given to you to get this amount.

2) Maximum amount to borrow for a used car @ 3.29%, $350 per month, for 4 years or 48 months.

The amount=$15,721.34. Again, use the formula given to you to get this amount.

Note: As you can see, there is very little difference between the two, because the difference in interest rates is very small, 0.5%. 

Umm so how do i write that out for that correction??

My equations should have been : 

New Car

A =  350 [ (1 + .0279/12)^48 - 1 ] / [(.0279/12) ( 1 + .0279/12)^48 ]  = $15,879

Used Car

A  = 350 [ (1 + .0329/12)^48 - 1 ] / [(.0329/12) ( 1 + .0329/12)^48 ]  = $15, 721.34