10. marie can afford a $250 per month car payment. she's found a 5 year loan at 7% interest.
a. how expensive of a car can she afford?
b. how much total money will she pay the loan company?
c. how much of that money is interest?

A) Marie can afford Car expensive of = $2139

B)The total amount she pay to loan company = $ 3000

C) The interest amount = $861  

Step-by-step explanation:

Given as :

Marie can afford car payment of =$ 250 per month

                                                      =$ = 250 × 12 = $3000 per year

She Found a loan  for time period of = 5 years

The interest rate applied = 7%

Now ,

Amount of payment  = Principal ×

Or, $3000 = The original value of car ×

Or, $3000 = The original value of car × 1.4025

Or, The original value of car =

So, The original value of car = $2139.03

Now, Compound Interest = CI = Amount - Principal

Or,                                         CI = $3000 - $2139

So,                                         CI = $861

Hence Form the above solution, it is found that :

A) Marie can afford Car expensive of = $2139

B)The total amount she pay to loan company = $ 3000

C) The interest amount = $861   Answer

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