Final answer:
The question is about calculating the monthly payment for a $17,200 loan with a 5.5% annual interest rate compounded monthly over three years. To determine this, one must use the loan payment formula and plug in the relevant values, including converting the annual interest rate to a monthly rate and determining the number of payments.
Step-by-step explanation:
The question asked is related to finding the monthly payment for a loan amount when the interest is compounded monthly. To determine the monthly payment for a loan of $17,200 with a 5.5 percent interest rate compounded monthly over three years, we can use the formula for the monthly payment P for a loan with principal amount A, monthly interest rate r, and number of monthly payments n:
P = A * (r(1+r)^n) / ((1+r)^n - 1)
In this case, we need to first convert the annual interest rate to a monthly rate by dividing by 12, then use the given numbers to calculate the monthly payment.
So, we have:
A = $17,200
r = 5.5 percent / 12 months = 0.004583... (approximately)
n = 3 years * 12 months/year = 36 months
Using the formula above, we can calculate the monthly payment. After calculating, we can check the given options to find the correct monthly payment amount. Without the exact calculation shown here, one cannot determine the correct answer from the choices given. So, the question requires understanding of loan amortization and the use of the appropriate formula to arrive at the monthly payment amount.