Question

Melinda Stewart borrowed $5,000 at an annual interest rate of 7.2% for three years. Calculate her monthly payments.

M=Pm(1+m)na(1+m)na−1
A. 89.73
B. 95.24
C. 99.73
D. 154.84

Answer 1

Hi there
The formula to find the monthly payment is
Pmt=pv÷[(1-(1+r/12)^(-12×n))÷(r/12)]
PMT=5,000÷((1−(1+0.072÷12)^(
−12×3))÷(0.072÷12))
=154.84...answer

Hope it helps