Respuesta :
The monthly payment is $3509.022
Data;
- Principal = $5000
- rate = 6.25% = 0.0625
- t = 60
- N = 12
Compound Interest
To solve this problem, we have to find the payment compounded monthly for a period of 60 months.
[tex]A = P[(1 + \frac{r}{n})]^nt\\A = 5000[(1 + \frac{0.0625}{12}]^6^0^*^1^2 \\A = 5000*[1.0052083]^7^2^0\\A = 5000*42.108\\A = 210541.374[/tex]
The compounded interest over a 60 months is $210,541.374.
The amount due monthly is $210,541.374 divided by 60
[tex]\frac{210541.374}{60} = 3509.022[/tex]
The monthly payment is $3509.022
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