11
QuizMultiple Choice

Personal Loans

Question 11 • 1442 Personal Finance B CA

Calculate the monthly payment for a loan of $7,500 with an 11% interest rate compounded monthly over a period of 5 years.

Answer
A
$128.46
B
$163.07
C
$858.18
D
$1541.50

Explanation

Use the monthly loan-payment formula: payment = P × r ÷ [1 − (1 + r)^−n]. Here, P = $7,500, the monthly rate is 0.11 ÷ 12 ≈ 0.009167, and the number of payments is 5 × 12 = 60. Substituting gives a monthly payment of about $163.07, so the correct choice is $163.07.

AI-written and checked against the verified answer.

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