Answer:
<u>The correct answer is B. $ 29,555.50</u>
Step-by-step explanation:
Let's calculate A, using the formula provided, this way:
A = P * [(1 + r)ⁿ - 1]/r * (1 + r)ⁿ, where:
P is the month payment = 725
r is the monthly interest rate = 0.0825/12 = 0.006875
n is the the number of months to pay = 4 * 12 = 48
Replacing with the values we know, we have:
A = P * [(1 + r)ⁿ - 1]/r * (1 + r)ⁿ
A = 725 * [(1 +0.006875 )⁴⁸ - 1]/0.006875 * (1 +0.006875 )⁴⁸
A = 725 * 0.38939833/0.006875 * 1.38939833
A = 282.313789/0.009552114
A = 29,555.50
<u>The correct answer is B. $ 29,555.50</u>
