When the engine falls out of Rhonda's old car, it's time to shop for something newer. She is hoping to keep her monthly payment at $140, and a loan will be 5% simple interest for 48 months with a $1000 down payment. Under these conditions, the most expensive car that Rhonda can afford is $6600.00. A salesman tries to convince Rhonda that she would be able to get a much better car if she raises the payment by just $30 per month.