Answer:
$353.05
Explanation:
To calculate this, the loan amortization formula is employed as follwow:
P = {A × [r(1 + r)^n]} ÷ {[(1+r)^n]-1} .................................... (1)
Where,
P = Monthly required payment = ?
A = Loan amount = $7,500
r = monthly interest rate = (0.12 ÷ 12) = 0.01
n = number of payment period = 24 months
Substituting all the figures into equation (1), we have:
P = {7,500 × [0.01(1 + 0.01)^24]} ÷ {[(1 + 0.01)^24]-1} = $353.05
Therefore, the amount of monthly payments is $353.05.
