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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?

User Aynat
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Answer:


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.


User Jbrtrnd
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