Answer:
the amount of the payment is $2,007,040
Explanation:
The computation of the amount of the payment is as follows:
= Borrowed amount × (1 + rate of interest)^number of years
= $1,600,000 × (1 + 0.12)^2
= $2,007,040
We simply applied the future value formula to determine the amount of the payment
Hence, the amount of the payment is $2,007,040
