Question

"Paco is considering the purchase of a used car. Paco currently has excess monthly cash flow of $490 available for vehicle payment and other associated expenses. Paco estimates the following monthly expenses for the car: $60 for gas, $70 for insurance, $15 for maintenance, and $10 repairs. What is the amount Paco has remaining for the loan payment each month, based on the information given?"

Answer 1

Paco will have 335 dollars available for the car-loan

Step-by-step explanation:

fromthe $490 cash flow

we should subtract the cash cost as once we obtain it through a loan we will have to handle with them as well:

490

- 60 gas

- 70 insurance

- 15 maintenance

- 10 repairs

335 net monthly savings after the purchase of the car.