Problem:
Jimmy just bought a new Ford SUV for his business. The price of the vehicle was $40,000. Jimmy made a $5,000 down payment and took out an amortized loan for the rest. The car dealership made the loan at 8% annual interest compounded monthly for five years. He is to pay back the principal and interest in equal monthly installments beginning one month from now.
Required:
Question: Determine the amount of Jimmy's monthly payment.
Note: Please show how to work it out.