Question

when the engine falls out of rhondas old car, its time to shop for something newer. she is hoping to keep her monthly payment at \\$170, and a loan will be 6.6\\% simple interest for 48 months.

part 1 of 2
(a) if rhonda plans to make a down payment of \\$2000 and finance her car for 48 months, whats the price of the most expensive car she can afford? (hint let \\(x =\\) the price of the car and use the formulas for fixed installment loans and the simple interest formula to set up an equation.) round the answer to the nearest cent.

the most expensive car that rhonda can afford is \\$\box$.

Explanation:

Identify the given parameters

Using the Installment Loans and Down Payment Calculation knowledge points

$$
LATEXBLOCK0
$$

Express the loan amount

Using the Down Payment Calculation knowledge point

$$
LATEXBLOCK1
$$

Calculate total repayment amount

Using the Simple Interest knowledge point

$$
LATEXBLOCK2
$$

Set up the equation with monthly payments

Using the Installment Loans knowledge point

$$
LATEXBLOCK3
$$

Solve for the car price

Using the Installment Loans knowledge point

$$
LATEXBLOCK4
$$

Answer:

(a) If Rhonda plans to make a down payment of $2000 and finance her car for 48 months, what's the price of the most expensive car she can afford? (Hint let x = the price of the car and use the formulas for fixed installment loans and the simple interest formula to set up an equation.) Round the answer to the nearest cent.

The most expensive car that Rhonda can afford is $<blank>8455.70</blank>.