Question

You are borrowing $5,230 to buy a car. The terms of the loan call for monthly...

You are borrowing $5,230 to buy a car. The terms of the loan call for monthly payments for 5 years at a 5.50 percent interest compounded monthly. What is the amount of each payment?

a.$75.93

b. $95.67

c. $99.90

d. $97.16

e. $75.38

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Homework Answers

Answer #1

Calculate the monthly payment as follows:

Therefore, the monthly payment is $99.90.

Therefore, Option C is correct.

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