Final answer:
The payment necessary to amortize the loan is approximately $316.01.
Step-by-step explanation:
To find the payment necessary to amortize the loan, we can use the formula for the monthly payment of an amortizing loan:
P = (PV * r) / (1 - (1 + r)^-n)
Where:
PV = Present value of the loan ($12,000)
r = Monthly interest rate (12%/12 = 1%)
n = Number of monthly payments (48)
Plugging in the values:
P = (12,000 * 0.01) / (1 - (1 + 0.01)^-48)
Calculating this will give us the approximate monthly payment:
P ≈ $316.01