What would the monthly payment be for a $5,000 loan with a 6.25% interest rate compounded monthly spread over 60 months?

For a fixed-payment loan, use the monthly rate and number of monthly payments: r = 0.0625 ÷ 12 ≈ 0.005208 and n = 60. The payment is 5,000r ÷ [1 − (1 + r)^−60], which is about $97.25 per month. Therefore, the correct choice is $97.25.

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