In calculating the monthly payment for a five-year loan, what value should be used for n, the number of periods over which the loan is repaid, as it appears in the following formula? 2007-10-03-00-00_files/i0060000.jpg a. 5 b. 12 c. 60 d. 120

The answer is actually C. 60

The answer is: c. 60.

Step-by-step explanation:

To calculate the monthly payment for 5 years, the 12 months of 1 year should be multiplied by the 5 years of the duration, which is equal to 60 = 5 x 12.

The answer is: c. 60.

take the logarithm of both sides (the base of the log doesn't matter):

apply the exponent property - this says that :

distribute the log terms on both sides:

group like terms together:

divide through both sides by the coefficient on :

you can do some additional rewriting here using the properties of the logarithm to simplify things if you like: