9514 1404 393
Answer:
$48.64
Step-by-step explanation:
The monthly payment amount is given by the amortization formula ...
A = P(r/n)/(1 -(1 +r/n)^(-nt))
where P is the loan amount, r is the annual interest rate compounded n times per year for t years.
Here, you have P=2000, r=0.16, n=12 (months per year), t=5 (years), so the payment is ...
A = $2000(0.16/12)/(1 -(1 +0.16/12)^(-12·5)) = $320/(12(0.54828942))
A ≈ $48.636 ≈ $48.64
You will need to pay $48.64 each month to pay off the charge in 5 years.
