Respuesta :
Answer:
Option b - $163.07
Step-by-step explanation:
Given : A loan of $7,500 with an 11% interest rate compounded monthly over a period of 5 years.
To find : Monthly payment
Solution : Formula to find monthly payment
Monthly Payment = Amount / Discount factor
Discount factor
where ,
Amount = $7500
Rate= 11%=0.11
Time = 5 years
Now, put i and n in Discount factor ,
Monthly payment,
Therefore, Option b is correct monthly payment = $163.07
Answer:
The answer is $163.07
Step-by-step explanation:
To find the monthly payment:
[tex]i = \frac{0.11}{12} = 0.0091[/tex]
Time = 5 years
5 x 12 = 60
Discount factor
[tex]D = \frac{1-(1 + i) -^{n}}i[/tex]
[tex]D = \frac{1 - (1+ 0.009)-^{60} }{0.009} \\[/tex]
[tex]D = \frac{0.421}{0.009} = 46.77[/tex]
Monthly payment
[tex]\frac{7500}{46.77} = $163.07[/tex]
