## Math Problem Statement

Philip buys a new car, where he makes $500 down payment and finances the remaining balance at the interest rate of 15% compounded monthly. The loan will be amortized (paid back) with 48 monthly payments of $180 each What is the cash price of this car?

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Loan Amortization

Interest Compounding

Algebra

### Formulas

M = P * [r(1 + r)^n] / [(1 + r)^n - 1]

P = [M * ((1 + r)^n - 1)] / [r * (1 + r)^n]

### Theorems

Amortization Formula for Loans

### Suitable Grade Level

Grades 10-12 (Advanced Algebra)

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