Answer: the monthly payment for the loan is approximately $5,315.44.
Explanation:
To find the monthly payment for the loan, we can use the formula for calculating loan payments:
P = (Pv * r) / (1 - (1 + r)^(-n))
where P is the monthly payment, Pv is the present value of the loan, r is the monthly interest rate, and n is the number of payments.
In this case, Pv = $100,000, r = 8.75% / 12 = 0.0072917 (monthly interest rate), and n = 20 (number of payments).
Substituting these values into the formula, we get:
P = (100,000 * 0.0072917) / (1 - (1 + 0.0072917)^(-20))
Simplifying this expression, we get:
P = $5,315.44