Using the monthly payment calculation formula M=(P⋅(r)/(12)⋅(1+(r)/(12))^12⁢t)/((1+(r)/(12))^12⁢t−1) , what would be the monthly payment for a loan with a principal of $⁢5,000 , an annual interest rate of 7% , and a term of 5 years?

The monthly interest rate is 0.07 ÷ 12, and the 5-year term gives 5 × 12 = 60 monthly payments. Substituting P = 5,000, r/12 = 0.07/12, and 12t = 60 into the formula gives a monthly payment of about $99.03. The closest choice is $99.00.

AI-written and checked against the verified answer.