Answer:
$627
Explanation:
To find the answer, we use the present value of an annuity formula:
[tex]P = A[1-(1+i)^{-n} /i][/tex]
Where:
- P = Present value of the investment
- A = Value of the annuiry
- i = interest rate
- n = number of compounding periods
Now, we plug the amounts into the formula:
[tex]12,600 = A[1-(1+0.0465)^{-60} /0.0465\\][/tex]
12,600 = A (20.09870355)
A = 12,600/20.09870355
A = 627
Thus, the value of the monthly payments is $627
