Answer:
The amount of each monthly payment is $1,254.72.
Explanation:
Amount Borrowed = 65% ×$113,800 = $73,970
Annual Interest = 6.82%
Monthly Interest Rate = 6.82% / 12 = 0.5683%
Number of Payments = 12 * 6 = 72
Let $X be the monthly payment.
$73,970 = $X×PVIFA(0.5683%, 72)
73,970 = X×(1-(1/1.005683)^72)/0.005683
73,970 = X×58.9535
X = $1,254.72
Therefore, the amount of each monthly payment is $1,254.72.
