Final answer:
The monthly payment for the sailboat can be calculated using the amortizing loan payment formula with a principal of $20,179.80, a monthly interest rate of 0.00575, and a total of 132 payments over 11 years.
Step-by-step explanation:
To calculate the monthly payment for a sailboat with the given parameters, we use the formula for the monthly payment on an amortizing loan, which is:
M = P * (i(1+i)^n) / ((1+i)^n - 1)
Where M is the monthly payment, P is the principal loan amount after down payment, i is the monthly interest rate, and n is the total number of payments.
The boat costs $22,422, and a 10% down payment would be 0.10 * $22,422 = $2,242.20. The amount to be amortized is $22,422 - $2,242.20 = $20,179.80
The monthly interest rate is 6.9% annually, which when divided by 12 equals 0.575% per month, or in decimal form, 0.00575.
The total number of monthly payments over 11 years is 11 * 12 = 132.
Plugging these values into the formula:
M = $20,179.80 * (0.00575(1+0.00575)^132) / ((1+0.00575)^132 - 1)
When you do the calculations, you'll find the monthly payment amount that will be required.