Respuesta :

1200* (5% * 4) = 240
240 + 1200 = 1440
1440/12 = $120

The answer is $120 per month.

The amount can be calculated using the formula

[tex] A=P( 1+\frac{r}{100})^t [/tex]

Here P is the Principal ,r is the rate of interest and t is the formula .

In the given question P=$1200 ,r=5% ,t= 4 years.

Substituting these values in the formula

[tex] A=1200( 1+\frac{5}{100} )^4 [/tex]


[tex] A=1200(1.05)^{4} [/tex]

A=1458.60

Amount of monthly payment=[tex] \frac{1458.60}{12} =121.55 [/tex]

The amount of your monthly payment is $121.55.