Answer: His car was $415.18 in total
Step-by-step explanation: The calculation of the present value of a cash flow or other income stream that produces $1 in income over so many periods of time.
Amount borrowed = $12,500
Annual interest rate = 12.00%
Monthly interest rate = 1.00%
Period = 36 months
Let monthly payment be x
12,500 = x/1.01 + x/1.01^2 + x/1.01^3 … + x/1.01^35 + x/1.01^36
12,500 = x * (1 - (1/1.01)^36) / 0.01
12,500 = x * 30.107505
x = 12,500/30.107505
x = 415.18
So, the monthly payment is $415.18