Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 87

Chuck Wells is planning to buy a Winnebago motor home. The listed price is $165,000. Chuck can get a secured loan from his bank at 7.25% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,800 per month and amortize the loan in 42 months.
a. Can he pay offthe loan in 42 months and keep his payments under $3,800?
c. What are Chuck's options to get his payments closer to his goal?
d. Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.95% loan if Chuck can pay 20% down. Will these conditions meet Chuck's goal?
e. Chuck has told the seller he cannot buy the motor home at the listed price. If the seller agrees to reduce the listed price by $4,600 and Chuck pays the 20% down, will Chuck meet his goal?