On January 1, Pablo Borrows $5,000 with a Fixed Interest

question 39

Multiple Choice

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's fifth loan payment would be interest charged?

• A) $38.50.
• B) $36.90.
• C) $35.29.
• D) $33.36.