Question

Question 1

Answer 1

Answer:

$283.07

Step-by-step explanation:

Monthly Payment Formula

$\sf PMT=\dfrac{Pi(1+i)^n}{(1+i)^n-1}$

where:

• PMT = monthly payment
• P = loan amount
• i = monthly interest rate (in decimal form)
• n = term of the loan (in months)

Given:

• P = 15000
• i = 5% / 12 = 0.05 / 12
• n = 5 years = 60 months

Substitute the given values into the formula and solve for PMT:

$\implies \sf PMT=\dfrac{15000\left(\frac{0.05}{12}\right)\left(1+\frac{0.05}{12}\right)^{60}}{\left(1+\frac{0.05}{12}\right)^{60}-1}$

$\implies \sf PMT=283.0685047...$

Therefore, the monthly payments will be $283.07.