Answer:
(C)[tex]\$506.18[/tex]
Step-by-step explanation:
Manufacturer's Suggested Retail Price = $31,000
CashBack = $4500
Amount Financed = $31,000-4500 =$26500
Interest rate Per Annum =5.5%
Rate Per Period (Monthly), r [tex]=\frac{5.5}{12}\%=\frac{0.055}{12}[/tex]
Time =5 Years
Number of Periods, n=5 X 12=60 Months
[tex]Monthly \:Payment=\dfrac{rP}{1-(1+r)^{-n}}[/tex]
[tex]=\dfrac{\frac{0.055}{12}*26500}{1-(1+\frac{0.055}{12})^{-60}}\\=\$506.18[/tex]
