Question 1201662
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Answer: <font color=red>$709.89</font>


Work Shown:


The formula to use is
P = (L*i)/( 1-(1+i)^(-n) )
where,
P = monthly payment
L = loan amount
i = monthly interest rate in decimal form
n = number of months


In this case
L = 40,000
i = 0.025/12 =  0.00208333 approximately
n = 5*12 = 60 months


Then,
P = (L*i)/( 1-(1+i)^(-n) )
P = (40000*0.00208333)/( 1-(1+0.00208333)^(-60) )
P = 709.894393670184
P = <font color=red>709.89</font>


The answer can be confirmed with a calculator such as this one
<a href = "https://www.calculator.net/loan-calculator.html">https://www.calculator.net/loan-calculator.html</a>
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