To find the monthly payment needed to pay off a loan, we can use the formula for the monthly payment of an amortizing loan:

$M = \frac{P \times r \times (1 + r)^n}{(1 + r)^n - 1}$

Where:

• $M$ is the monthly payment.
• $P$ is the principal amount of the loan.
• $r$ is the monthly interest rate (annual interest rate divided by 12).
• $n$ is the total number of payments (loan term in years multiplied by 12).

For this specific loan:

• $P = 9,500$ dollars
• Annual interest rate = 7.25%, so the monthly interest rate $r = \frac{7.25\%}{12} = \frac{0.0725}{12}$
• Loan term = 5 years, so $n = 5 \times 12 = 60$ months

Let's calculate the monthly payment $M$.The monthly payment needed to pay off the $9,500 loan at a 7.25% annual interest rate compounded monthly for 5 years is approximately $189.23.

Would you like more details or have any questions?

Here are five related questions you might find interesting:

1. How does the payment change if the interest rate increases to 8%?
2. What is the total amount paid over the 5-year period?
3. How much of the first payment goes toward interest?
4. How would bi-weekly payments affect the total interest paid?
5. What is the remaining balance after 3 years of payments?

Tip: Understanding how interest is compounded can significantly affect your decisions when taking out a loan.