Answer
$\$ 9020.60$
Work Step by Step
(see p. 870)
If a loan $A_{p}$ is to be repaid in
$n$ regular equal payments with
interest rate $i$ per time period,
then the size $R$ of each payment is given by
$R=\displaystyle \frac{iA_{p}}{1-(1+i)^{-n}}$
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Solve for $A_{p},$ multiply both sides with $\displaystyle \frac{1-(1+i)^{-n}}{i}$
$A_{p}=R\displaystyle \times\frac{1-(1+i)^{-n}}{i}$
$R = 220,$
$n = 12 (3) = 36, \quad i = \displaystyle \frac{0.08}{12} \approx 0.00667$.
$A_{p}=220\displaystyle \times\frac{1-(1+\frac{0.08}{12})^{-36}}{\frac{0.08}{12}} = \$ 7,020.60$.
Add the downpayment,
Total paid = $\$ 7,020.60+\$ 2000 =\$ 9020.60$
