Answer:
Monthly installment = $1,431.20
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly equal installment is calculated as follows:
Monthly equal installment= Loan amount/Monthly annuity factor
Loan amount = 230,000
Monthly annuity factor = =( 1-(1+r)^(-n))/r
r- Monthly interest rate (r) = 6.35%/12= 0.529%
n- Number of months ( n) = 30 × 12= 360
Annuity factor = ( 1- (1.00529)^(-360)/0.00529=
Monthly installment= 230,000 /160.704
Monthly installment = $1,431.20
