Question: Please explain how to get this answer. Thanks. Consider an amortized loan with the principal amount =$5,000, nominal interest rate =12% based on monthly compounding.

Please explain how to get this answer. Thanks. Consider an amortized loan

Please explain how to get this answer. Thanks.

Consider an amortized loan with the principal amount =$5,000, nominal interest rate =12% based on monthly compounding. A two year term is used to pay off the loan using monthly payments. What is the remaining balance of the loan right after the 12th payment (select the closest answer if you refer to the interest factor table)? Select one: a. $2855.89 cross out b. $2649.08 c. $2440.20 d. $2229.24 cross out

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