Using the formula M=(P⋅(r)/(12)⋅(1+(r)/(12))^12⁢t)/((1+(r)/(12))^12⁢t−1) , calculate the monthly payment for a student loan of $⁢12,000 with an annual interest rate of 3.5% and a term of 7 years.

Use a monthly interest rate of 0.035 ÷ 12 ≈ 0.0029167 and 7 × 12 = 84 monthly payments. Substituting P = 12,000, r/12 ≈ 0.0029167, and 12t = 84 into the formula gives a monthly payment of about $161. The closest choice is A, $161.00.

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