To calculate the Maximum Value of a Car (MV):
\[ MV = MP \times L - \frac{MP \times I}{100} \times \frac{L}{12} \]
Where:
Car affordability is the recommended total value of a car that a person can afford based on their income. It considers the maximum amount that can be paid each month towards a specific expense or loan, the length of the loan in months, and the yearly interest rate of the loan.
Let's assume the following values:
Using the formula:
\[ MV = 500 \times 60 - \frac{500 \times 5}{100} \times \frac{60}{12} = 29875 \]
The maximum value of the car is $29875.
Let's assume the following values:
Using the formula:
\[ MV = 400 \times 48 - \frac{400 \times 3}{100} \times \frac{48}{12} = 19152 \]
The maximum value of the car is $19152.
