Use the formula to solve for c. Choose the right answer.
Amount Financed (m) = $275
Number of Payments per year (y) = 12
Number of Payments (n) = 18
APR (I) = 12%
What does c represent?
To solve for c using the given formula, we need to use the formula for calculating the monthly payment on a loan:
c = (m * I) / (1 - (1 + I)^(-n))
Now let's substitute the given values into the formula:
m = 275
y = 12
n = 18
I = 12% (which is equivalent to 0.12 as a decimal)
c = (275 * 0.12) / (1 - (1 + 0.12)^(-18))
To find the solution, we can use a calculator or solve the equation step by step using the order of operations. Let's use a calculator to find the answer.
By evaluating the expression, we find that c ≈ $19.99.