Question 1168513
Let's break down this problem step by step to find the selling price of the car.

**1. Understand the Problem**

* Kent sold his car to Carolyn.
* Down payment = $1,000
* Monthly payments = $120.03
* Payment period = 3.5 years
* Interest rate = 12% per year, compounded monthly

**2. Calculate the Number of Payments**

* Number of years = 3.5
* Number of months = 3.5 * 12 = 42 payments

**3. Calculate the Monthly Interest Rate**

* Annual interest rate = 12% = 0.12
* Monthly interest rate (r) = 0.12 / 12 = 0.01

**4. Calculate the Present Value of the Monthly Payments**

We need to find the present value (PV) of the annuity (monthly payments). The formula for the present value of an ordinary annuity is:

PV = PMT * [1 - (1 + r)^-n] / r

Where:

* PV = Present value of the annuity
* PMT = Monthly payment = $120.03
* r = Monthly interest rate = 0.01
* n = Number of payments = 42

PV = 120.03 * [1 - (1 + 0.01)^-42] / 0.01
PV = 120.03 * [1 - (1.01)^-42] / 0.01
PV = 120.03 * [1 - 0.65584] / 0.01
PV = 120.03 * 0.34416 / 0.01
PV = 120.03 * 34.416
PV ≈ 4131.05

**5. Calculate the Selling Price**

The selling price is the sum of the down payment and the present value of the monthly payments.

Selling price = Down payment + PV
Selling price = $1,000 + $4,131.05
Selling price = $5,131.05

**Therefore, the selling price of the car was approximately $5,131.05.**