Answer:
Step-by-step explanation:
This is an Ordinary annuity question. You are basically asked to find the Present Value of the annuity which is the amount borrowed.
PVA = [tex]\frac{PMT}{r} [1-(1+r)^{-n} ][/tex]
PMT = Recurring payment = $350
r= interest rate ; monthly rate in this case = 4%/12 = 0.333% or 0.00333
n= total duration = 3 *12 = 36 months
PVA = [tex]\frac{350}{0.00333} [1-(1.00333)^{-36} ][/tex]
PVA =105,105.1051 *0.11279645
PVA = 11,855.48275
Therefore, amount you can borrow is $11,855.48
