Answer:
$323
Step-by-step explanation:
The monthly payment can be calculated using the formula:
[tex]M=\frac{P(\frac{r}{12})(1+\frac{r}{12})^n}{(1+\frac{1}{12})^n-1}\\\\[/tex]
where:
- M=monthly payment
- P=amount borrowed
- r=annual interest rate
- n=total number of monthly payments:
Our parameters are defined as:
[tex]n=60\\P=21000-4000=17000\\r=5.3%\\\\[/tex]
We plug our parameters in the equation to solve for M;
[tex]M=M=\frac{P(\frac{0.053}{12})(1+\frac{0.053}{12})^n}{(1+\frac{0.053}{12})^{60}-1}\\\\\\\\[/tex]
[tex]=\frac{P(\frac{0.053}{12})(1+\frac{0.053}{12})^{60}}{(1+\frac{0.053}{12})^{60}-1}\\\\\\=323.15[/tex]
[tex]=323.15\approx\$323[/tex]
Hence, the monthly payment is $323
