Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in Selkirk, MB where the PST + GST is 12%. She wants to pay the truck off in 5 years. She has a down payment of $1400. The dealership will finance the truck at an interest rate of 4.95%. a. How expensive a truck can Ellen afford to buy? b. How much interest will Ellen pay over the course of the loan?
Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in Selkirk, MB where the PST + GST is 12%. She wants to pay the truck off in 5 years. She has a down payment of $1400. The dealership will finance the truck at an interest rate of 4.95%. a. How expensive a truck can Ellen afford to buy? b. How much interest will Ellen pay over the course of the loan?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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![Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in
Selkirk, MB where the PST + GST is 12%. She wants to pay the truck off in 5 years.
She has a down payment of $1400. The dealership will finance the truck at an
interest rate of 4.95%.
a. How expensive a truck can Ellen afford to buy?
b. How much interest will Ellen pay over the course of the loan?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb39421c-38bb-4589-afa3-ba94a88e84c2%2F8ed66206-9148-48e3-bed6-cb97403f3818%2F55e7hlc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in
Selkirk, MB where the PST + GST is 12%. She wants to pay the truck off in 5 years.
She has a down payment of $1400. The dealership will finance the truck at an
interest rate of 4.95%.
a. How expensive a truck can Ellen afford to buy?
b. How much interest will Ellen pay over the course of the loan?
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