Answer:
$84,807
Step-by-step explanation:
The appropriate amortization formula is ...
... A = P(r/n)/(1 - (1 +r/n)^(-nt))
where A is the monthly payment, P is the principal amount of the loan (which we want to find), r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Putting the given information into the formula, we have ...
... 457.06 = P(0.042/12)/(1 -(1 +0.042/12)^(-12·25))
... = P·0.00538942318
Then ...
... P ≈ 457.06/0.00438942318 ≈ 84,806.849
Rounded to the nearest dollar, that is ...
... P ≈ $84,807
