Answer:
The Monthly payment is 601.6337
Step-by-step explanation:
Loan Amount is $85,000
Time period is 20 years
APR is 5.85%
Payment is supposed to made monthly so [tex]n=12*20=240[/tex]
As we know that
[tex]p=\frac{r(PV)}{1-(1+r)^{-n}} \\\\where, r=\frac{0.0585}{12}=0.004875 , n=240,PV=85000\\\text{Substitute the values and simplify}\\\\[/tex]
[tex]p=\frac{0.004875*85000}{1-(1+0.004875)^{-240}} =601.6337\\\\[/tex]
