Answer:
c. $117.93
Step-by-step explanation:
The amortization formula tells you this.
A = P(r/12)/(1 -(1 +r/12)^(-12t)
where A is the payment, P is the principal, r is the annual interest rate and t is the number of years. Filling in these values and doing the arithmetic gives ...
A = 3500(0.13/12)/(1 -(1 +0.13/12)^-36) ≈ 117.9288 ≈ 117.93
Susan's monthly payment will be $117.93.
