Answer:
$185.26
Explanation:
The computation of monthly loan payment is shown below:-
Loan Amount = PV = $10,000
r = monthly interest rate = 10% ÷ 12 = 0.833%
n = 72 months
Monthly loan payment = (r × PV) ÷ (1 - (1 + r)^ -n)
= (0.833% × $10,000) ÷ [1 - (1 + 0.833%)^ -72)
= $83.33 ÷ 0.4498
= $185.258432
or
= $185.26
Therefore for computing the monthly loan payment we simply applied the above formula.
