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#280 at the
Nader plans to buy a car. He can afford to pay
end of each month for 3 years. The best interest rate
he can find is 9.8% la, compounded monthly.
for this interest rate, the most he could spend on a car
is $8702.85,
Determine the amount he could spend on the
purchase of the car if the interest rate is 9.8%.la,
Compounded annually.

Answer :

Parrain

Based on the amount that Nader can pay per month, and the interest rate as well as the period, the amount he could spend if the rate was annual is $8,385.33.

How much could Nader spend on the car?

If Nader can pay $280 per month, the amount he can pay per year i:

= 280 x 12

= $3,360

The amount that he can spend on the car is the present value of these yearly payments:

= 3,360 x (1 - (1 + 9.8%)⁻³) / 9.8%

= 3,360 x 2.49563439768461

= $8,385.33

Find out more on the present value of periodic payments at https://brainly.com/question/17244776.

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