How much can I borrow? The function in can be rearranged to show the amount of money P = P (M, r, t), in dollars, that you can afford to borrow at a monthly interest rate of r (as a decimal) if you...

How much can I borrow? The function in can be rearranged to show the amount of money P = P (M, r, t), in dollars, that you can afford to borrow at a monthly interest rate of r (as a decimal) if you are able to make t monthly payments of M dollars:

Suppose you can afford to pay $350 per month for 4 years.

a. How much money can you afford to borrow for the purchase of a car if the prevailing monthly interest rate is 0.75%? (That is 9% APR.) Express the answer in functional notation, and then calculate it.

b. Suppose your car dealer can arrange a special monthly interest rate of 0.25% (or 3% APR). How much can you afford to borrow now?

c. Even at 3% APR you find yourself looking at a car you can’t afford, and you consider extending the period during which you are willing to make payments to 5 years. How much can you afford to borrow under these conditions?