Question 2 • Financial Algebra/Mathematics
The monthly interest rate is 0.05 ÷ 12, and the 3-year loan has 12 × 3 = 36 monthly payments. Substituting P = $10,000, r/12 = 0.05/12, and 12t = 36 into the formula gives a monthly payment of about $299.71. Therefore, the correct choice is $299.71.
AI-written and checked against the verified answer.