Answer:
$475
Step-by-step explanation:
The total amount Rahim will be paying is found from the simple interest formula ...
A = P(1 +rt) . . . . . P is the loan amount, r is the annual rate, t is the number of years.
A = $24,000(1 +0.0375×5) = $28,500
Spread over 60 monthly payments, that amounts to ...
$28,500/60 = $475 . . . per month
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Additional comment
Mr. Rahim's loan has an APR of 6.98%. This sort of loan costs more than the interest rate might suggest, because interest is still being paid on principal that has already been repaid.
