Answer:
The correct answer is A. 257.83
Explanation:
Let's use the formula for calculating the monthly payment, as follows:
A = P * (r(1+r)^{n})/((1+r)^{n}-1)}
A = the monthly payment.
P = the principal = $ 11,000
r = the interest rate per month, which equals the annual interest rate divided by 12 = 0.059/12 = 0.0049167
n = the total number of months = 48
Replacing with the real values, we have
A = 11,000 * [0.0049167 * (1 + 0.0049167)⁴⁸]/ (1 + 0.0049167)⁴⁸ - 1
A = 11,000 * [0.0049167 * 1.265444343 ]/1.265444343 - 1
A = 11,000 * [0.0049167 * 1.265444343 ]/0.265444343
A = 68.43991224 /0.265444343
A = $ 257.83
The correct answer is A. 257.83