Susan took out a personal loan for $3,500 at an interest rate of 13% compounded monthly. She made arrangements to pay the loan off in 3 years. What will her monthly payment be?

Use the monthly loan-payment formula: payment = principal × monthly interest rate ÷ [1 − (1 + monthly interest rate)^−number of payments]. Here the monthly rate is 0.13 ÷ 12, and there are 3 × 12 = 36 payments. Substituting gives a payment of about $117.93, so the correct choice is $117.93.

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