Which of these groups of values plugged into the TVM Solver of a graphing

calculator will give the monthly payment for a 20-year loan for $205,000 at

5.6% interest, compounded monthly?

O

A. N=20,1% = 5.6; PV=-205000; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

B. N-240; 1% = 5.6; PV=-205000; PMT=; FV=0; P/Y=12; C/Y=12;

PMT:END

O

O C. N-240; 1% = 5.6; PV=0; PMT=; FV--205000; P/Y=12; C/Y=12;

PMT:END

D. N=20; 1% = 5.6; PV-O; PMT=; FV--205000; P/Y=12; C/Y=12;

PMT:END

O

The correct option is B, N-240; 1% = 5.6; PV=-205000; PMT=; FV=0; P/Y=12; C/Y=12;

PMT: END

Step-by-step explanation:

The compounding is done monthly which is means that the number of periods for which the compounding is carried is the number of months in twenty years, which is 20*12=240

Only options B and C have N as 240.

The present worth of the loan, which is the amount of loan is $205,000

Option B has PV=-$205,000

Option C has PV = $0

Ultimately option B which stated the loan amount correctly is the right answer.

Also, the future value of the loan is unknown, hence option B has it as $0-unknown while option C stated it as - $205,000, which effectively means that the PV was used as FV