9514 1404 393
Answer:
$503.85
Step-by-step explanation:
The amortization formula can help with this.
A = P(r/12)/(1 -(1 +r/12)^(-n))
where P is the loan value, A is the monthly payment, r is the annual interest rate, and n is the number of monthly payments.
We want to find P. All of the other values are given.
P = A(1 -(1 +r/12)^-n)/(r/12)
P = 32.48(1 -1.012667^-18)/(0.012667) = 31.48·16.0054
P ≈ 503.85
The equivalent cash price is about $503.85.
