question 6 (1 point)\nif the interest rate is 10 percent and you borrow a $2000, 2 - year fixed payments car…

Explanation:

Step1: Recall loan - payment formula

The formula for the present - value of an ordinary annuity is $PV = PMT\times\frac{1-(1 + r)^{-n}}{r}$, where $PV$ is the present value of the loan, $PMT$ is the annual payment, $r$ is the interest rate per period, and $n$ is the number of periods. We need to solve for $PMT$. Rearranging the formula gives $PMT=\frac{PV\times r}{1-(1 + r)^{-n}}$.

Step2: Identify the values of $PV$, $r$, and $n$

We know that $PV=$2000$, $r = 0.1$ (since the interest rate is 10% or 0.1), and $n = 2$ (2 - year loan with annual payments).

Step3: Substitute the values into the formula

$PMT=\frac{2000\times0.1}{1-(1 + 0.1)^{-2}}$. First, calculate $(1 + 0.1)^{-2}=\frac{1}{(1 + 0.1)^{2}}=\frac{1}{1.21}\approx0.8264$. Then, $1-(1 + 0.1)^{-2}=1 - 0.8264 = 0.1736$. And $2000\times0.1 = 200$. So, $PMT=\frac{200}{0.1736}\approx1152.40$.

Answer:

$1152.40$ (corresponding to the option $$1152.40$)