Respuesta :
Answer:
B) $573.12
Step-by-step explanation:
Since, the payment per period of a loan is,
[tex]P=\frac{r(P.V.)}{1-(1+r)^{-n}}[/tex]
Where, P.V. is the principal amount,
r is the rate per period,
n is the number of periods,
Here, P.V. = $ 70,000,
Time = 25 years
Since, the payment is paid monthly,
And, 1 year = 12 months,
So, the number of periods, n = 12 × 25 = 300,
Also, the rate per year = 8.7 % = 0.087
So, the rate per month,
[tex]r=\frac{0.087}{12}[/tex]
Hence, the monthly payment is,
[tex]P=\frac{\frac{0.087}{12}(70000)}{1-(1+\frac{0.087}{12})^{-300}}[/tex]
[tex]=\$ 573.124525343\approx \$573.12[/tex]
Option B is correct.
