Question

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%

c = $.
A.) 26.13
B.) 25.99
C.) 25.78

Answer 1

The answer is
C=(0.12×275×19)÷(2×12)

=26.13

Answer 2

Option A - c=$26.13

Explanation:

Given : Amount Financed (m) = $275, Number of payment per year(y) = 12, Number of payments(n) = 18 and APR(I)=12%

To find : The value of c.

Solution :

The formula used to find c is the interest formula,

`I=(2yc)/(m(n+1))`

Where I=interest=12% , m=amount financed=$275 , n=number of payment=18, y=number of payments per year=12 , c=total interest=?

Substitute all the values given,

`12\%=(2(12)(c))/((275)(18+1))`

`(12)/(100)=(24(c))/((275)(19))`

`(12)/(100)=(24(c))/(5225)`

`c=(12*5225)/(24*100)`

`c=(62700)/(2400)`

`c=26.125`

Approximately c= $26.13

Therefore, Option A is correct.