Answer:
The correct answer is $7931.44.
Explanation:
According to the given scenario, the given data are as follows:
Payments ( PMT ) = $185 per month
Time period ( N )= 48 months
Interest rate (R ) = 5.65%
So, we can calculate the present value she can borrow by using following formula:
Present value = PMT [ [tex]\frac{1-\frac{1}{(1+r)^{n} } }{r}[/tex] ]
= $185 [ [tex]\frac{1 - \frac{1}{1+0.004708^{48} } }{0.004708}[/tex] ]
= $185 [ 42.872 ]
= $7931.44
Hence, the correct answer is $7931.44
