Answer :
Answer:
The monthly payment is $160.82
Explanation:Parameters:
Principal, P = $20,000
Time, T = 5 years
Interest Rate, R = 7.9% = 0.079
Number of times compounded per year, n = 12
We have:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ \\ =20000(1+\frac{0.079}{12})^{12\times5} \\ \\ =29649.2771 \\ \\ Next,\text{ we calculate monthly payment as:} \\ \\ \frac{A-P}{12t} \\ \\ =\frac{29649.2771-20000}{12*5} \\ \\ =160.82 \end{gathered}[/tex]