You want to buy a new sports car from Roy's Cars for $51,800.The contract is in the form of a 48-month annuity due at an APR of7.8 percent, compounded monthly.What would be your monthly payment?

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The correct answer is A.The monthly payment for a 48-month annuity due at an APR of 7.8 percent, compounded monthly, on a $51,800 loan is $1,251.60. This can be calculated using the formula for the present value of an annuity due:PV = PMT * [1 - (1 + r)^-n] / rwhere:PV is the present value of the annuityPMT is the monthly paymentr is the monthly interest raten is the number of monthsIn this case, the present value of the annuity is $51,800, the monthly interest rate is 7.8% / 12 = 0.65%, and the number of months is 48. Plugging these values into the formula, we get:$51,800 = PMT * [1 - (1 + 0.0065)^-48] / 0.0065PMT = $1,251.60

You Want to Buy a New Sports Car from Roy's