Answer:
B. $271
Step-by-step explanation:
Given,
Present value of the loan, PV = $ 6000,
Annual rate of interest = 8 % = 0.08,
So, the monthly rate of interest, r = [tex]\frac{0.08}{12}[/tex],
Also, time = 2 years,
So, the total number of months, n = 24,
Hence, the monthly payment would be,
[tex]A=\frac{PV(r)}{1-(1+r)^{-n}}[/tex]
[tex]=\frac{6000(\frac{0.08}{12})}{1-(1+\frac{0.08}{12})^{-24}}[/tex]
[tex]=\$271.363748737[/tex]
[tex]\approx \$271[/tex]
Option B is correct.
