The monthly payment for a $5000 loan at a 5.25% rate is 97.25. Then the correct option is B.
The term loan refers to a sort of credit vehicle in which a sum of money is lent to another party in exchange for the value or principal amount being repaid in the future.
The loan amount is $5000 with a rate of 6.25% over 60 months.
Then the monthly payment (MP) will be
[tex]r = \dfrac{0.0625}{12} = 0.0052[/tex]
Then the formula will be
[tex]\rm MP = P \times \dfrac{r(1+r)^n}{(1+r)^n - 1}\\[/tex]
P = $5000
r = 0.0052
n = 60
Then we have
[tex]\rm MP = P \times \dfrac{0.005208(1+0.005208)^{60}}{(1+0.005208)^{60} - 1}\\\\MP = 97.245 \approx 97.25[/tex]
More about the monthly payment link is given below.
https://brainly.com/question/14064255
