Answer:
$471.49
Explanation:
The formula for computing the monthly payment is shown below:
PMT=P(r/n)/1-(1+r/n)^(-nt)
P=loan amount=$27,500
r=interest rate=7.2%
n=number of monthly payments in a year=12
t= duration of loan=6 years
PMT=27500*(7.2%/12)/(1-(1+7.2%/12)^(-6*12)
PMT=27500*0.6000% /(1-(1+0.6000%)^-72
PMT=165 /(1-0.650047943 )
PMT=$471.49
