Suppose That You Want to Purchase a Car Today

Multiple Choice

Suppose that you want to purchase a car today.You can afford payments of $400 per month and want to pay the loan back over the next five years.Assuming no down payment is required,how much can you borrow if the bank will charge you an annual percentage rate of 12% compounded monthly?

A) $16,726.68
B) $18,220.18
C) $24,667.87
D) $25,008.90
E) $17,982.02