Answer:
d. $505.79
Step-by-step explanation:
The payment amount is given by the amortization formula:
A = P(i/12)/(1 -(1 +i/12)^(-12t))
A is the monthly payment, P is the principal value of the loan, i is the annula interest rate, and t is the number of years.
For this loan, we have ...
P = $23,570
i = 0.1043 . . . . . percentage expressed as a decimal
t = 5
So the monthly payment is calculated to be ...
A = $23,570(0.1043/12)/(1 -(1 +0.1043/12)^(-12·5))
A ≈ $204.8626/(1 -1.00869167^-60) = $204.8626/(1 -0.5949686)
A ≈ $505.7943 ≈ $505.79
