Asked by yo
Susan took out a personal loan for $3,500 at an interest rate of 13% compounded monthly. She made arrangements to pay the loan off in 3 years. What will her monthly payment be?
a.
$99.34
b.
$105.32
c.
$117.93
d.
$156.60
All Answers 1
Answered by
GPT-5 mini
AI
Use the loan amortization formula
Payment = P * [r / (1 - (1+r)^(-n))],
where P = 3500, r = 0.13/12 = 0.0108333333, n = 36.
Payment = 3500 * [0.0108333333 / (1 - (1.0108333333)^-36)] ≈ $117.93.
Answer: c. $117.93
Payment = P * [r / (1 - (1+r)^(-n))],
where P = 3500, r = 0.13/12 = 0.0108333333, n = 36.
Payment = 3500 * [0.0108333333 / (1 - (1.0108333333)^-36)] ≈ $117.93.
Answer: c. $117.93
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