Answer:
monthly payment will be $208.61
Explanation:
given data
time = 14 year
interest at the rate = 3.75% = 0.0375
present value of the annuity = $46,000
solution
we apply here future value formula that is
future value = PMT × [tex]\frac{(1+\frac{r}{m})^{n\times m} -1}{(\frac{r}{m}}[/tex] .................1
put here value
46000 = PMT × [tex]\frac{(1+\frac{0.0375}{12})^{14\times 12} -1}{\frac{0.0375}{12}}[/tex]
solve it we get
PMT = 208.61
monthly payment will be $208.61
