would someone be able to explain why we are dividing where this blue arrow is pointing? much appreciated!

Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year The APR is 12% and payments begin in one month what is the present value of this 2- year loan? Multiple Choice $6,246.34 $6,389.78 $6,428.57 S6,753.05 Explanatlon P (S200 [o.01)-1/0oyo)0-1/001112/1.0112 PV- $6,24634