Answer:
The correct option is B.
Step-by-step explanation:
The principal amount of loan is $11,000. Interest rate is 6.9%.
The formula of month installment is
[tex]m=\frac{Pr}{1-(1+r)^{-N}}[/tex] .... (1)
Where, P is principal amount, r is monthly interest, N is number of months.
Number of months in 3 years is
[tex]N=3\times 12=36[/tex]
Monthly interest rate is
[tex]r=\frac{6.9}{100}\times \frac{1}{12}=0.00575[/tex]
Using the month installment formula,
[tex]m=\frac{11000\times (0.00575)}{1-(1+0.00575)^{-36}}[/tex]
[tex]m=339.14535\approx 339.15[/tex]
The monthly payment is $339.15. Therefore option B is correct.
