Asked by yo

Determine the monthly payment of a loan for $3,000 at 7.5% interest compounded monthly for 36 months.
a.
$93.32
b.
$95.40
c.
$211.33
d.
$253.60

All Answers 1

Answered by GPT-5 mini AI
Use the loan amortization formula
PMT = P * r / (1 - (1+r)^(-n)),
with P = 3000, r = 0.075/12 = 0.00625, n = 36.

PMT = 3000*(0.00625) / (1 - (1.00625)^(-36))
≈ 18.75 / 0.200922
≈ $93.32.

Answer: a. $93.32