Answer:
Therefore I can borrow $19646.12 from E-Loan.
The interest I will pay for the loan is $1,857.88.
Explanation:
The formula of present value is
[tex]PV=PMT(\frac{1-(1+i)^{-n}}{i})[/tex]
PMT = The monthly payment = $448
i= Rate of interest per period [tex]=\frac{4.5}{12}\%=0.00375[/tex]
n = The number of month = 48 months
Therefore
[tex]PV=448(\frac{1-(1+0.00375)^{-48}}{0.00375})[/tex]
≈$19646.12
Therefore I can borrow $19646.12 from E-Loan.
The interest = Paid amount - Loan amount
=$[(448×48)-19646.12]
=$1,857.88
The interest I will pay for the loan is $1,857.88.
