You plan to buy a new truck from your local GMC dealership for $40,000. Because you dont have $40,000 today, the dealer is willing to lend you $40,000. The loan will be paid off through a series of equal monthly payments over the next five years, with the first payment occurring one month from today. Interest is compounded monthly, and the stated annual interest rate (or APR) is 4.8%. The loan requires no money down (you will not pay any money up front). What payment will you have to make each month to pay off the loan? (Round your final answer to the nearest cent)

Multiple Choice

• $751.19

• $686.31

• $712.78

• $596.32

• $785.47