The amount of his monthly payment will be $175.53 ⇒ B
Step-by-step explanation:
The formula of the monthly payment is [tex]M.P=\frac{P(\frac{r}{n})(1+\frac{r}{n})^{nt}}{(1+\frac{r}{n})^{nt}-1}[/tex] , where
∵ Hiram took out a subsidized student loan of $30,000 at a 3.6% APR
compounded monthly
∴ P = 30,000
∴ r = 3.6% = 3.6 ÷ 100 = 0.036
∴ n = 12 ⇒ compounded monthly
∵ He will begin paying off the loan in 21 months with monthly
payments lasting for 20 years
∴ t = 20
- Substitute all of these values in the formula above
∵ [tex]M.P=\frac{30,000(\frac{0.036}{12})(1+\frac{0.036}{12})^{(12)(20)}}{(1+\frac{0.036}{12})^{(12)(20)}-1}[/tex]
∴ [tex]M.P=\frac{30,000(0.003)(1+0.003)^{240}}{(1+0.003)^{240}-1}[/tex]
∴ [tex]M.P=\frac{90(1.003)^{240}}{(1.003)^{240}-1}[/tex]
∴ M.P = 175.53
The amount of his monthly payment will be $175.53
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You can learn more about the compound interest in brainly.com/question/3614284
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