Final answer:
The monthly payment for a $5000 loan with an APR of 15% and a loan term of 15 years is approximately $58.80.
Step-by-step explanation:
To calculate the monthly payment for a loan, we can use the formula:
PMT = (P * i) / (1 - (1 + i)^(-n))
where:
PMT = monthly payment
P = loan amount
i = monthly interest rate
n = number of monthly payments
Given:
Loan amount (P) = $5000
Annual interest rate (APR) = 15%
Loan term (n) = 15 years
First, we need to convert the APR to a monthly interest rate by dividing it by 1200 (12 months * 100).
i = 15% / 1200 = 0.0125
Next, we need to convert the loan term from years to months.
n = 15 years * 12 months = 180 months
Now we can substitute the values into the formula:
PMT = (5000 * 0.0125) / (1 - (1 + 0.0125)^(-180))
By evaluating this expression, the monthly payment for the loan is approximately $58.80