Total cost of purchasing the car = $16,825 + 0.0719 x $16,825 + $1,128 + $190 = $19,352.72 Value of her previous car = 0.9 x $16,825 = $15,142.50
Amount being owed by Terry = $19,352.72 - $15,142.50 = $4,210.22
The present value of annuity is given by PV = P(1 - (1 + r/t)^-nt) / (r/t) where P is the monthly payment, r is the rate = 10.59% = 0.1059, t is the number of periods in a year = 12, n is the number of years.
