Answer:
She can expect the monthly payment of $ 241.81 ( approx )
Step-by-step explanation:
Since,
The original price of the vehicle = $ 12,000
After getting $1500 cash-back incentive,
The price of the vehicle, P.V. = $ 12,000 - $ 1,500 = $ 1,050,
Now, the annual rate = 5 % = 0.05,
⇒ The monthly rate, r = [tex]\frac{0.05}{12}[/tex],
Time = 4 years,
⇒ Number of months, n = 4×12 = 48 ( 1 year = 12 months )
Now, the monthly payment would be,
[tex]P=\frac{P.V.(r)}{1-(1+r)^{-n}}[/tex]
[tex]=\frac{10500(\frac{5}{1200})}{1-(1+\frac{5}{1200})^{-48}}[/tex]
[tex]=\$241.807582492\approx \$ 241.81[/tex]
Hence, she can expect the monthly payment of $ 241.81.
