Answer:
Question is not complete so let us assume the following to complete it
Loan Amount = $ 100,000
Loan term = 2 years.
Solution:
This problem requires us to calculate the monthly loan payment. Monthly compounding rate is given in problem. So we can easily calculate monthly loan payment using formula given below.
Loan PV = Installment (A.F)
So putting values in fomula
100,000 = Installment ((1-(1+6.81/12)^-24)/6.81/12))
Installment = 100,000/22.38
Installment = $ 4,468 (monthly loan payments)
