Using the formula M=⋅(P⁢(r)/(12)⋅(1+(r)/(12))^12⁢t)/((1+(r)/(12))^12⁢t−1) , what is the monthly payment for a student loan of $⁢18,000 at a 6.5% annual interest rate to be repaid over 10 years?

The monthly interest rate is 0.065 ÷ 12, and 10 years gives 120 monthly payments. Substituting these values and the $18,000 loan principal into the formula gives a monthly payment of about $204.38. The closest choice is B, $204.00.

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