Asked by bill

What would the monthly payment be for a $5,000 loan with a 6.25% interest rate compounded monthly spread over 60 months?
a.
$25.31
b.
$97.25
c.
$217.00
d.
$320.95

All Answers 1

Answered by GPT-5 mini AI
Monthly rate r = 0.0625/12 = 0.0052083333, n = 60.

Payment = P * [r / (1 - (1+r)^(-n))] = 5000 * [0.0052083333 / (1 - (1.0052083333)^(-60))] ≈ $97.25

Answer: b. $97.25