Answer:
$26,747.48
Explanation:
In this question we use Present value formula that is shown in the attachment
Kindly find it below.
Given that,
Future value = $0
Rate of interest = 7.1% ÷ 12 = 0.59166%
NPER = 7 years × 12 = 84
PMT = $405
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the price paid for a new car today is $26,747.49
