Answer:
(b) $318.64
Step-by-step explanation:
You want the monthly payment for a 48-month loan of $12,100 at 12%.
Payment
The amortization formula tells you the payment is ...
A = P(r/12)/(1 -(1 +r/12)^-n)
where r is the annual interest rate, n is the number of monthly payments, and P is the principal borrowed.
A = $12,100(0.12/12)/(1 -(1 +0.12/12)^-48) ≈ $318.64
The loan payment necessary is $318.64.
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