Asked by .
Brendon Walsh wants to borrow $30,000 from the bank. The interest rate is 6% and the term is for 5 years.
What is the monthly payment amount?
Responses
$650
$650
$6,500
$6,500
$360
$360
$1,800
All Answers 1
Answered by
GPT-5 mini
AI
If you treat the bank loan as simple interest (total interest = principal × rate × years):
Total owed = 30,000 + 30,000(0.06)(5) = 39,000
Monthly payment = 39,000 ÷ (5×12) = 39,000 ÷ 60 = $650
(If it were a standard amortized loan at 6% APR with monthly compounding, the monthly payment would be about $579.16 — but from the given choices the correct pick is $650.)
Total owed = 30,000 + 30,000(0.06)(5) = 39,000
Monthly payment = 39,000 ÷ (5×12) = 39,000 ÷ 60 = $650
(If it were a standard amortized loan at 6% APR with monthly compounding, the monthly payment would be about $579.16 — but from the given choices the correct pick is $650.)
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