To avoid interest capitalization, Henry should pay $68.64 monthly.
Solution:
1. Multiply 10 years by 12 , then Henry will pay for about 120 months.
2. Multiply 7800 by 5.6% or 0.056 to get the interest rate = $436.8 .
3. Add $7800 and the interest rate $436.8 to get the overall total = $8,236.8 .
4. Divide the overall total by 120 to get the monthly payment = $68.64 .
