Answer:
monthly payment is $377
C is the correct option.
Step-by-step explanation:
The formula for the monthly payment is given by
[tex]C=\frac{Prt(1+r)^n}{(1+r)^n-1}[/tex]
Given that,
P = $20,000
n = 5 years = 60 months
r = 0.05
Substituting these values in the formula
[tex]C=\frac{20000\cdot \frac{0.05}{12}(1+\frac{0.05}{12})^{60}}{(1+\frac{0.05}{12})^{60}-1}[/tex]
On simplifying, we get
[tex]C=\$377.425\\\\C\approx \$377[/tex]
Therefore, the monthly payment is $377
C is the correct option.
