Question

Charles wants to take out a 5 year loan on a car that costs $15,000. He is trying to make a rough estimate to decide if he can afford to make the payments. He can afford to pay up to $200 per month, and thinks this will be okay. Is this estimate reasonable?

Answer 1

No, This is not reasonable estimate.

Explanation:

Charles wants to take out a 5 year loan on car that cost $15000.

He make rough estimate to make payment. He can afford to pay up to $200 per month.

First we find total number of months in 5 years.

Total months = 5x12= 60 months

Total estimate to pay =
`60* 200` =$12000

we can see cost of a car $15,000 is greater than his estimation $12,000.

Therefore, Charles estimation will not work.

No, This is not reasonable estimate.