Question

John takes a small business loan

for $18,000. the term for
repayment is 60 months and
the annual interest rate is 5.25%.
using the monthly payment
formula, what is the estimated
monthly payment?

Answer 1

9514 1404 393

Answer:

$341.75

Explanation:

You have not provided the formula, so we'll use one we like:

A = P(r/12)/(1 -(1 +r/12)^(-n)) . . . . principal P, annual rate r, n months

A = $18,000(0.0525/12)/(1 -(1 +0.0525/12)^-60) ≈ $341.75

The monthly payment is about $341.75.