Answer:
Hence, The required value of c = $92.08
Step-by-step explanation:
Amount Financed (m) = $500
Number of Payments per year (y) = 12
Number of Payments (n) = 12
APR (I) = 17%
[tex]Time = \frac{\text{Total number of payments}}{\text{Number of payments per year}}\\\\\implies Time = \frac{12}{12}=1 \text{ year}[/tex]
Now, c can be calculated by using the formula :
[tex]c=\frac{\text{Amount Financed}\times Rate\times (n+1)}{Time\times y\times 100}\\\\\implies c = \frac{500\times 17\times 13}{1\times 12\times 100}\\\\\implies c = \$92.08[/tex]
Hence, The required value of c = $92.08
