You have agreed to a $35,000 fixed-rate loan from Wells Fargo Bank today and promise to repay the loan with 24 equal monthly payments at an APR of 5.75%.How large are your monthly payments? Use a financial calculator to determine your answer.

Question

Quizplus · Accepted Answer

The correct answer is A. $1,547.28. To calculate the monthly payment, we can use the following formula:Monthly payment = (Loan amount * APR) / (1 - (1 + APR)^(-n))where:Loan amount = $35,000APR = 5.75% / 12 = 0.004792n = 24Plugging these values into the formula, we get:Monthly payment = (35000 * 0.004792) / (1 - (1 + 0.004792)^(-24))= 1547.28Therefore, the monthly payment is $1,547.28.

You Have Agreed to a $35,000 Fixed-Rate Loan from Wells