Susan took out a personal loan for $3,500 at an interest rate of 13% compounded monthly. She made arrangements to pay the loan off in 3 years. What will her monthly payment be? a. $99.34 b. $105.32 c. $117.93 d. $156.60

The answer is c. $117.93

For the answer to the question above,

This is a present value of an ordinary annuity question.

It is present value because you have a present value - the future value will be 0.

I assume the interest rate is 13% per annum.

A=3500

i=0.13/12=0.01083 repeater

1+i=1.01083 repeater

n=3*12=36

You have to find R

formula is

A = R x (1 - (1+i) ^-n) / i

Just substitute the given to this formula and you'll get the answer.