A man agrees to pay $450 per month for 48 months to pay off a car loan. If interest of is charged at 12% compounded monthly, how much did the car originally cost?

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  1. 12/12 = 1% per month
    total paid = 450 * 48 = 21,600
    21,600 = x (1.01)^48
    x = 13,397.62

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