The Jimenez family purchased a new home. To fully furnish their new home, they took a loan

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Question:

The Jimenez family purchased a new home. To fully furnish their new home, they took a loan from their credit union that charges 13% per year compounded monthly. The loan amount was $17,000. They wish to pay off this loan in 3 years. How much are their monthly payments? Identify its type.

a) Present Value of an Annuity

b) Sinking Fund

c) Future Value with compound interest

d) Present Value with compound interest

e) Amortization

f) None of the above.