Answer:
$24,872.66
Explanation:
Monthly payment= 425.00
Rate of interest = 4.40%
Number of years = 66/12 = 55
Annual Compounding = 12
Present Value is to be calculated
Present Value = Monthly payment * 1 - (1+r/n)^-n*t / r/n
Present Value = 425 * 1 - (1+0.044/12)^-12*5.5 / 0.044/12
Present Value = 24,872.6610
Present Value = $24,872.66
Taylor could afford $24,872.66 to buy the car with a 66 month loan at an annual interest rate of 4.4%.
