Which statement is true regarding residuals in regression analysis? a. Mean of residuals is always less than zero. b. Mean of residuals is always zero. c. Mean of residuals is always greater than zero. d. None of the above

The amortization formula relates the principal and the loan payment by
  A = Pi/(n(1 -(1 +r/n)^(-nt)))
You have
  532 = P*0.071/(12*(1 -(1 +.071/12)^(-12*6))) = P*0.017097
  P = 532/0.017097 = 31,116.45

This was the amount financed, so the original price is 3700 higher.
  The cash price of the car was $31,116.45 +3,700 = $34,816.45