To determine the value of [tex]\( n \)[/tex] for calculating the monthly payment for a five-year loan, follow these steps:
1. Understand the Loan Duration: The loan is for a period of five years.
2. Determine the Number of Months in a Year: There are 12 months in a year.
3. Calculate the Total Number of Monthly Payments:
Since the loan is repaid monthly over the entire duration of five years, you need to find the total number of monthly periods.
To do this:
- Multiply the number of years by the number of months per year:
[tex]\[
n = \text{years} \times \text{months per year} = 5 \times 12
\][/tex]
4. Perform the Multiplication:
[tex]\[
n = 5 \times 12 = 60
\][/tex]
Thus, the total number of periods [tex]\( n \)[/tex] over which the loan is repaid is 60.
The correct answer is:
c. 60
