Frank took out a five-year loan of $48,000 with an annual interest rate of 5%. Calculate his monthly payment.

$1,000

$4,800

$589

$1,230

Answer: A

Step-by-step explanation:

First you have to calculate the Interest of the loan each month which is 48,000*.05 = 2400/12 = 200 dollars he has to pay per month. Then we have have to calculate how much he has to pay off the loan each month which is 48000/5 years to pay it off = 9600/12 months = 800.

800+200 = 1000 dollars a month interest and loan