Answer: The monthly payment can be calculated using the following formula:
P = (r(1 + r)^n) / ((1 + r)^n - 1) * A
where:
P is the monthly payment
r is the monthly interest rate, which is equal to 11.5% / 12 = 0.09583333...%
n is the total number of payments, which is equal to 5 years * 12 months/year = 60 months
A is the loan amount, which is equal to $25,950
Substituting the values into the formula, we get:
P = (0.09583333... * (1 + 0.09583333...)^60) / ((1 + 0.09583333...)^60 - 1) * $25,950
Using a financial calculator or spreadsheet software, we can find that the monthly payment is approximately $509.67.
So Dan's monthly payments will be $509.67.
Explanation: