Answer 4
Amount = $5000
Interest rate = 1.5%
n = 12*5=60 months
Hence Monthly payment will be given by annuity, hence, PV = A*(1-(1+r)^-n)/r
or, 5000=A*(1-(1+1.5%)^-60)/1.5%
or, 5000=A*(1-(1+0.015)^-60)/0.015
or, 5000=A*(1-1.015^-60)/0.015
or, 5000=A*(1-0.4093)/0.015
or, 5000=A*0.5907/0.015
or, A = 5000*0.015/0.5
or, A = $126.97
Hence monthly payment will be $126.97
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