Problem:
You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is 400. The loan would have a 8% APR based on end-of-month payments.
Required:
Question 1: What is the most expensive car you could afford if you finance it for 48 months? Round your answer to the nearest cent.
Question 2: For 60 months? Round your answer to the nearest cent.
Note: Explain all steps comprehensively.