Question 12 • FowU - Financial Math - B
Use the monthly loan-payment formula: payment = balance × monthly rate ÷ [1 − (1 + monthly rate)^(−number of payments)]. The monthly rate is 0.1357 ÷ 12 = 0.0113083, and two and a half years is 30 monthly payments. Substituting gives a payment of about $72.96 per month, so the correct choice is $72.96.
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