What is monthly payment for a $25,000 amortized loan to purchase a car payable over 5 years at an annual interest rate of 6%?
A)$416
B)$432
C)$483
D)$556
E)$565

Question

Quizplus · Accepted Answer

The monthly payment for an amortized loan can be calculated using the formula for an annuity. For a $25,000 loan over 5 years (60 months) at an annual interest rate of 6% (0.5% monthly), the monthly payment is approximately $483.

What Is Monthly Payment for a $25,000 Amortized Loan to Purchase