Answer:
The monthly payment is $450.71
Step-by-step explanation:
Financial Computing
Given the loan amount A, the loan term t, and the APR (annual percentage rate), the montly payment is computed as
[tex]\displaystyle P=\frac{A}{f}[/tex]
where f is
[tex]\displaystyle f=\frac{1-(1+i)^{-n}}{i}[/tex]
The provided data is
[tex]\displaystyle A=24,000[/tex]
[tex]\displaystyle r=4.8\%[/tex]
[tex]\displaystyle t=5\ years[/tex]
Since the payments will be made monthly, the values of n and i are:
[tex]\displaystyle i=\frac{4.8}{100\times12}=0.004[/tex]
[tex]\displaystyle n=5\times12=60\ months[/tex]
Calculating f:
[tex]\displaystyle f=\frac{1-(1+i)^{-n}}{i}[/tex]
[tex]\displaystyle f=\frac{1-(1+0.004)^{-60}}{0.004}[/tex]
[tex]\displaystyle f=53.25[/tex]
Now for the payments:
[tex]\displaystyle P=\frac{24.000}{53.25}=450.71[/tex]
[tex]\boxed{\displaystyle P=\$450.71}[/tex]
