The monthly payment for Jake borrowing $41,000 for 5 years at a 3% APR is $736.72.
Monthly payments are equal periodic payments made to offset an outstanding liability.
The monthly payments are the compounded principal (Principal + Compound Interest amount) divided by the number of periods.
The monthly payments can be computed using an online finance calculator as follows:
N (# of periods) = 60 months (5 years x 12)
I/Y (Interest per year) = 3%
PV (Present Value) = $41,000
FV (Future Value) = $0
Results:
Monthly Payment (PMT) = $736.72
Sum of all periodic payments= $44,203.20
Total Interest = $3,203.20
Thus, Jake who borrowed $41,000 for 5 years at a 3% APR needs to make a monthly payment of $736.72 to settle the principal and the compounded interest.
Learn more periodic payments at https://brainly.com/question/13031679
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