Answer:
$57.50
Step-by-step explanation:
we know that
The monthly loan payment formula is equal to
[tex]M=\frac{P(\frac{r}{12})(1+\frac{r}{12})^{12t}}{(1+\frac{r}{12})^{12t}-1}[/tex]
where
M ----> is the monthly payment
P ---> the amount borrowed
r ---> interest rate as decimal
t ---> length of the loan in years
we have
[tex]t=5\ years\\ P=\$3,200\\ r=3\%=3/100=0.03[/tex]
substitute in the formula
[tex]M=\frac{3,200(\frac{0.03}{12})(1+\frac{0.03}{12})^{12(5)}}{(1+\frac{0.03}{12})^{12(5)}-1}[/tex]
[tex]M=\frac{3,200(0.0025)(1.0025)^{60}}{(1.0025)^{60}-1}[/tex]
[tex]M=\$57.50[/tex]
