Answer-
Maria's monthly payment will be $376.91
Solution-
Maria is buying a car worth of $18,510, but she will finance only $13,000 of it with a 3-year loan at 2.8% APR.
We know that,
[tex]\text{PV of annuity}=P[\dfrac{1-(1+r)^{-n}}{r}][/tex]
Here,
[tex]\text{PV of annuity=13000},\\\\\text{P=??},\\\\\text{r = 2.8\%\ annually}=\frac{2.8}{12}\text{\%\ monthly}\\\\\text{n=3 years=36 months}[/tex]
Putting the values,
[tex]\Rightarrow 13000=P[\dfrac{1-(1+\frac{2.8}{1200})^{-36}}{\frac{2.8}{1200}}][/tex]
[tex]\Rightarrow 13000=P\times 34.4909[/tex]
[tex]\Rightarrow P=\dfrac{13000}{34.4909}[/tex]
[tex]\Rightarrow P=376.91[/tex]
Therefore, her monthly payment will be $376.91
