Question

A person has taken a loan of $6000.00 for a fixed annual interest rate of 6% for 5 years with no down payment. the monthly payment has been fixed at $116.00 for entire term of the loan. here is the formula to calculate monthly fixed payment:

Answer 1

The formula for calculating the uniform monthly payments is as follows:
$A=\frac{P(i*(1+i)^{n})}{(1+i)^{n}-1}$
where 
P=amount borrowed=6000
i=monthly interest, equals APR/12=0.06/12=0.005
n=number of periods/months (number of years * 12)=5*12=60

Here, substituting numerical values,
$A=\frac{6000(0.005*(1+0.005)^{60})}{(1+0.005)^{60}-1}$
=$115.997
=$116.00 (to the nearest cent)