The formula for the monthly payments is:
[tex]M=P\cdot\frac{\frac{r}{12}\cdot(1+\frac{r}{12})^n}{(1+\frac{r}{12})^n-1}\text{.}[/tex]
Where:
• M = monthly payments,
,
• P = principal amount = $19300,
,
• r = interest rate in decimals = 6.1% = 0.061,
• n = # of years = 3.
Replacing the data of the problem in the formula above, we get:
[tex]M=19300\cdot\frac{\frac{0.061}{12}\cdot(1+\frac{0.061}{12})^3}{(1+\frac{0.061}{12})^3-1}\text{.}[/tex]
Answer
[tex]M=19300\cdot\frac{\frac{0.061}{12}\cdot(1+\frac{0.061}{12})^3}{(1+\frac{0.061}{12})^3-1}\text{.}[/tex]
