Answer:
$5,548.20
Step-by-step explanation:
p=$20,000
i=12%
t=5 years
find the monthly payment
solution:
r(1 + r)^n
monthly payment = P -----------------
(1 + r)^n - 1
0.12 (1 + 0.12)^5
= 20,000 ----------------------------
(1 + 0.12)^5 - 1
= 20,000 x 0.211
0.762
= 20,000 x 0.277
= $5,548.20
therefore,
the monthly payment is $5,548.20
