Question

68. If Fran can only pay $250 per month, what is the most expensive boat she can buy without a down payment?

Answer 1

If she buys a boat without a down payment, then the affordable price is 5,700.

Explanation:

Her bank charges 5% interest per year.

Let, payment = p,

p = 250(\frac{1-(1+\frac{0.05}{12})^-24}{\frac{0.05}{12}})

p = 5698.47

After round off p = 5700