Answer:
$1,696.51
Explanation:
For computing the amount of each monthly payment we use PMT formula i.e to be shown in the attachment below:
Data provided in the question
Present value = $130,000 × 0.70 = $91,000
Future value = $0
Rate of interest = 4.5% ÷ 12 = 0.375%
NPER = 5 years × 12 months = 60 months
The formula is shown below:
= -PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the monthly payment is $1,696.51
