Answer:
correct option is a.$3,657
Explanation:
given data
interest rate = 5.85 percent
cash c1 = $987
cash c2 = $1,012
cash c3 = $1,062
cash c4 = $1,162
solution
we get here loan amount in 4 year that is express as
loan amount = [tex]\frac{c1}{(1+r)} +\frac{c2}{(1+r)^2} +\frac{c3}{(1+r)^3} +\frac{c4}{(1+r)^4}[/tex] .........................1
put here value and we get
loan amount = [tex]\frac{987}{(1+0.0585)} +\frac{1012}{(1+0.0585)^2} +\frac{1062}{(1+0.0585)^3} +\frac{1162}{(1+0.0585)^4}[/tex]
solve it we get
loan amount = 3656.79
loam amount = $3657
so correct option is a.$3,657
