Answer:
The monthly payments are $489.01
Explanation:
Monthly Payment = [tex]\frac{P*r*(1+r)^n}{(1+r)^4-1}[/tex]
where P = Principal loan = $10,900
r = periodic interest rate = 7.2/12 = 0.6%
n = number of periods = 2 x 12 = 24
Substituting for the given parameters in the equation
Monthly payment = [tex]\frac{10900 * 0.006 * (1+0.006)^{24}}{(1+0.006)^{24} - 1}[/tex]
Solving the above, = $489.01
