Answer:
The monthly payment for this loan is $127.80
Step-by-step explanation:
The formula of the monthly payment is
[tex]M.P=\frac{P(\frac{r}{n})}{1-(1+\frac{r}{n})^{-nt}}[/tex]
∵ Mario is taking a $2,900, 2-year loan with an APR of 5.44%
∴ P = 2,900
∴ t = 2
∵ ART means annual percent rate
∴ r = 5.44% = 5.44 ÷ 100 = 0.0544
∴ n = 12
→ Substitute all these values in the formula above
∵ M.P = [tex]\frac{2,900(\frac{0.0544}{12})}{1-(1+\frac{0.0544}{12})^{-(12)(2)}}[/tex]
→ use your calculator to find the answer
∴ M.P = 127.7992528
→ Round it to the nearest cent ⇒ 2d.p
∴ M.P = 127.80
∴ The monthly payment for this loan is $127.80
