Answer:
<em>The cash price of the car is $25,873.44</em>
Step-by-step explanation:
<em>From the question given, let us recall the following statements</em>
<em>Esther pays $532 per month for 6 years for a car.</em>
<em>She made a down payment of= $3,700.</em>
<em>The loan cost 7.1%</em>
<em>The next step is to to get the cash price of the car.</em>
<em>Now,</em>
<em>R (rate)= $532</em>
<em>r =7.1% =0.071%</em>
<em>Since the down payment is $3,700</em>
<em>Then n=48</em>
<em>P = R (1- (1+i)⁻ⁿ/i = 532 (1-(1+0.071/12)⁻⁴⁸/0.071/12</em>
<em>P =22173.44</em>
<em>We now add it by $3700</em>
<em>The cash price of the car is =$25,873.44</em>