Answer:
$498.75
Explanation:
P = PV ×{ r/(1 − (1+r)−n )}
P is the value of each payment
PV is the Present Value of Annuity
r is the interest rate per period as a decimal, so 10% is 0.10
n is the number of periods
For Gerritt: Pv =$26,250
N periods will 12 period for five years which is 60 period
R is 5.29% per year which is 5.29% /12 per month
r=5.29/12= 0.440833/ 100
P = 26, 250 x {0.004408/ (1-{1+0.004408}-60)
p= 26,250 x { 0.004408/ (1-0.76805126)}
P= 26,250 x 0.004408/ 0.23194874
p=26,250 x 0.0190
P = 498.75
Monthly repayments are $498.75
