Kim Has Just Graduated from Law School

Multiple Choice

Kim has just graduated from law school. She had taken an education loan of $45,000, which now needs to be repaid in equal monthly installments over the next 6 years. What is the amount of the monthly loan payment, if the loan carries a simple annual interest of 5%? Use a calculator to make the calculation and round your answer to two decimal places.

A) $689.76
B) $663.85
C) $702.46
D) $658.92
E) $725.55