We can afford to make payments of $350 per month for four years. What is the largest amount of a loan we can get at an APR of 5%? a. $15,198
b. $11,253
c. $6327
d. $16,800

The correct option is a. $15,198.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the loan or the largest loan amount that can be gotten =?

P = Monthly payment = $350

r = Monthly interest rate = APR / 12 = 5% / 12 = 0.05 / 12 = 0.00416666666666667

n = number of months = 4 years * 12 months = 48

Substitute the values into equation (1) to have:

PV = $350 * ((1 - (1 / (1 + 0.00416666666666667))^48) / 0.00416666666666667)

PV = $350 * 43.4229559379367

PV = $15,198.0345782779

Rounding to a whole dollar amount, we have:

PV = $15,198

Therefore, the correct option is a. $15,198.

answer; limited pay life;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know