Answer:
Letter C $23,735.84.The result varies a few dollars, because during the solution an adjustment was made to the decimals.
Step-by-step explanation:
1. Define the price of the vehicle you are going to buy with the dealer or seller
Principal: $25230
Rate= 6.71%
N= 36 months
Down payment=15% of the cost of the vehicle= (25230*0.15)=$3784.50
25230-3784.50=21445.5
2. Apply the amortization formula to determine the monthly payments. With this taxation, you will determine the payments applied to the principal and the copper of interest.
A=P*(r(1+r)^{n})/((1+r)^{n}-1).
A= amortization or monthly payments.
P=Principal
R=interest rate
N= the total number of months
a. Calculate the monthly interest rate. The annual interest rate is 6.71% percent. Divide it by 12 to get the monthly interest rate. The monthly interest rate is 0.5592 percent (6.71/12 = 0.5592)
A=21445.5*(0,005592 (1+0,005592)^{{36}})/(1+0,005592)^{{36}}-1.
A=21445.5*(0,00683/0,2223)
A=21445.5*0,03072=658.90
Total of the payment= 658.90*36=23720.40
