Given,
per month car payment cost, P=$1,168
The rate of interest is 3%p.m.
Total year t=27
The present amount is calculated by:
[tex]A=P\lbrack1-\frac{1}{(1+r)^n}\rbrack\frac{1}{r}[/tex]Here r is
[tex]r=\frac{3}{12\times100}=0.0025[/tex]Putting the values,
[tex]A=1168\lbrack1-\frac{1}{(1+0.0025)^{12}}\rbrack\frac{1}{0.0025}=259152[/tex]Thus he would receive a loan of $259152
