Answer:
Monthly payment = $1,833.599
Explanation:
Loan amortization is a method of loan repayment where a series of equal amount is used to offset the principal and the interest due on a loan contract.
The monthly equal amount = loan amount/annuity factor
Annuity factor = 1- (1+r)^(-n))/r
r- monthly interest rate = 18%/12 = 1.5%
n- number of months = 12 months
Annuity factor = (1-(1.015)^(-12))/0.05
= 10.9075
Monthly payment = 20,000/10.90750521
=1,833.599
Monthly payment =$1,833.599
