Answer:
$11,130.47
Step-by-step explanation:
The amortization formula can be used. It tells you the monthly payment amount A for some principal P, interest rate r, and n payments.
A = P(r/12)/(1 -(1 +r/12)^(-n))
Filling in your values, we get ...
200 = P(.03/12)/(1 -(1 +.03/12)^-60) = P(.0025)/(1 -1.0025^-60)
P = 200(1 -1.0025^-60)/.0025 ≈ 200×55.6523577
P ≈ 11,130.47
The present value of the loan is $11,130.47.
