You just obtained a loan of $16,700 with monthly payments for four years at 6.35 percent interest, compounded monthly. What is the amount of each payment?

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To find the monthly payment for a loan, you can use the formula for the monthly payment of an amortizing loan: $PMT = P \times \frac{r(1+r)^n}{(1+r)^n-1}$, where $P$ is the principal amount ($16,700), $r$ is the monthly interest rate (annual rate divided by 12, so 6.35% / 12 = 0.5292%), and $n$ is the total number of payments (4 years x 12 months/year = 48 payments). Plugging in the values: $PMT = 16700 \times \frac{0.005292(1+0.005292)^{48}}{(1+0.005292)^{48}-1}$, calculating this gives a monthly payment of approximately $394.89.

You Just Obtained a Loan of $16,700 with Monthly Payments