Answer: $69.99
Explanation:
M = P * r * (1 + r)^n / ((1 + r)^n - 1)
Where:
M is the monthly payment,
P is the principal amount (the total cost of the washer and dryer),
r is the monthly interest rate (the annual interest rate divided by 12),
and n is the total number of payments (the number of years multiplied by 12).
P = $1,590
r = 4.2% / 100 / 12 (convert the annual interest rate to a monthly rate)
n = 2 * 12 (2 years multiplied by 12 months)
M = 1590 * (0.042 / 12) * (1 + 0.042 / 12)^(2 * 12) / ((1 + 0.042 / 12)^(2 * 12) - 1)
After performing the calculations, the monthly payment comes out to be approximately $69.99.
Therefore, the equation that correctly calculates Agnes's monthly payment is:
M = $69.99