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Rudiy27
2 years ago
6

Question 10 (7 points) d Elizabeth borrowed $20,000 for five years at a 5% annual interest rate, what is her monthly payment, to

the nearest dollar? A. $252 B. $334 C. $377 D. $4050 E. None of these Save
Mathematics
1 answer:
zhenek [66]2 years ago
4 0

Answer:

monthly payment is $377

C is the correct option.

Step-by-step explanation:

The formula for the monthly payment is given by

C=\frac{Prt(1+r)^n}{(1+r)^n-1}

Given that,

P =  $20,000

n = 5 years = 60 months

r = 0.05

Substituting these values in the formula

C=\frac{20000\cdot \frac{0.05}{12}(1+\frac{0.05}{12})^{60}}{(1+\frac{0.05}{12})^{60}-1}

On simplifying, we get

C=\$377.425\\\\C\approx \$377

Therefore, the monthly payment is $377

C is the correct option.

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\huge\mathfrak\colorbox{white}{}

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