Jana has $1,500 for a down payment and thinks she can afford monthly payments of $300. If she can finance a vehicle with a 7%, 4-year loan from a credit society, what is the maximum loan amount Jana can afford? (Round to the nearest dollar.)
A)$12,528
B)$14,208
C)$16,028
D)$17,900
E)$18,028

Question

Quizplus · Accepted Answer

The correct answer is A.The maximum loan amount Jana can afford is $12,528. This is because her monthly payments would be $300, and the interest rate is 7%. The loan term is 4 years, so the total amount of interest she would pay is $1,500. The total amount of the loan would be $12,528 + $1,500 = $14,028.

Jana Has $1,500 for a Down Payment and Thinks She