In this formula, c represents the monthly payment on a loan r represents the monthly interest rate. (Note: The monthly interest rate is simply the annual percentage rate [APR], as a decimal, divided by 12.) N represents the number of monthly payments, which is called the loan's term. P represents the amount borrowed, which is known as the loan's principal. (6) Suppose Janetta would like to buy a $17,000 car. She has enough cash to pay for taxes and license fees, and she has $2,000 from the sale of her previous car. She plans to take out a loan to cover the remaining costs. She is offered an APR of 7%. (a) If Janetta takes a 4-year loan, what will her monthly payments be? Use Equation #1: c=frac(Prsup(bracket(1+r),N),sup(bracket(1+r),N)-1) In your calculation, do not round any values. Round your final answer to the nearest cent