Answer:
$106
Step-by-step explanation:
The formula given for Monthly payment of a loan =
P × [ r (1 + r)/(1 + r)^n - 1
Where
r = interest rate
n = number of monthly payments
P = Present value of the loan
From the question,
r = interest rate, we were told to ignore hence, r = 0
P = $3,175
n = 30
Hence,
Amount to be paid monthly = P/n
= $3175/30
= $105.83
Approximately to the nearest dollars
= $106
