Answer:
$204.95
Step-by-step explanation:
[tex]\mathsf{monthly \ payment=\dfrac{\frac{r}{12}\times P}{(1-(1+\frac{r}{12})^{-n}}}[/tex]
where:
- P = total amount borrowed
- r = APR in decimal form
- n = total number of months of term of loan
Given:
- P = 8711
- r = 14.5% = 0.145
- n = 5 × 12 = 60 months
Substituting given values into formula:
[tex]\implies \mathsf{monthly \ payment=\dfrac{\frac{0.145}{12}\times 8711}{(1-(1+\frac{0.145}{12})^{-60}}}[/tex]
[tex]\implies \mathsf{monthly \ payment=\$204.95}[/tex]
