Answer:
D. $870; $31,320 from deposits and $3,680 from interest
Explanation:
In order to calculate the monthly payment, we use the formula below:
![P=(A\mleft((r)/(n)\mright))/(\mleft[\mleft(1+(r)/(n)\mright)^(nt)-1\mright])](https://img.qammunity.org/2023/formulas/mathematics/high-school/29g2eg0z8ah6dho5u8pommee1tbc3uumqv.png)
Given:
• The Financial Goal, A= $35,000
,
• Rate = 7.5% = 0.075
,
• Number of compounding period = 12 (Monthly)
,
• Time, t = 3 years
Substitute into the given formula:
![\begin{gathered} P=(35000\mleft((0.075)/(12)\mright))/(\mleft[\mleft(1+(0.075)/(12)\mright)^(12*3)-1\mright]) \\ P\approx\$870 \end{gathered}](https://img.qammunity.org/2023/formulas/mathematics/high-school/powk0zmfhq3i5xvs2v89naj4cqv8ze905y.png)
The monthly payment is $870.

Option D is correct.