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Answer:

The monthly payment needed to be made every month is $745.36.

Step-by-step explanation:

The formula to compute the loan payment is: [tex]P=\frac{PV\times r}{1-(1+r)^{-n}}[/tex]

Here,

P = Loan payment

PV = Present value

r = interest rate

n = number of periods.

Given:

PV = $38,000, r = 0.55% and n = 60

The monthly loan payment is:

[tex]P=\frac{PV\times r}{1-(1+r)^{-n}}\\=\frac{38000\times0.0055}{1-(1+0.0055)^{-60}} \\=745.36[/tex]

Thus, the monthly payment needed to be made every month is $745.36.