Consider a loan of ​$12 comma 500 for a period of 4 years at a fixed APR of 6.5​%. Complete parts​ (a) through​ (c) below.
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Part 1
a. Calculate the monthly payment.
The monthly payment is ​$
  
enter your response here. 

To calculate the monthly payment on a loan, we can use the formula for monthly payments on a fixed-rate loan:

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

Where:
- $ M $ is the monthly payment,
- $ P $ is the principal loan amount,
- $ r $ is the monthly interest rate,
- $ n $ is the number of payments (loan term in months).

### Step-by-step breakdown:
1. **Principal $ P $**: $12,500
2. **Annual Interest Rate**: 6.5%
   - Monthly interest rate $ r $: $\frac{6.5\%}{12} = \frac{0.065}{12} = 0.005417 $
3. **Loan Term**: 4 years
   - $ n $ (number of months): $4 \times 12 = 48 $

Now let's calculate the monthly payment using the formula. I'll compute it.The monthly payment for the loan is approximately **$296.44**.

Would you like further details or have any questions on how this was calculated?

Here are five related questions for further exploration:
1. How much total interest will be paid over the life of this loan?
2. What would the monthly payment be if the loan term was extended to 6 years?
3. How does the monthly payment change if the APR increases to 7.5%?
4. What is the total amount repaid by the end of the 4 years?
5. How much would you save in interest by paying an additional $50 each month?

**Tip**: Paying a little extra toward your loan principal each month can significantly reduce the total interest paid over time.

Consider a loan of ​$12,500 for a period of 4 years at a fixed APR of 6.5%. Calculate the monthly payment.

Learn how to calculate the monthly payment for a loan of $12,500 with a fixed APR of 6.5% over 4 years. This problem includes concepts like loan amortization and interest rate calculations, suitable for advanced high school or college-level students.

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