Final answer:
To find the periodic payment of an annuity, use the formula: PMT = PV * r / (1 - (1+r)^(-n)). In this case, the periodic payment is approximately $143.70.
Step-by-step explanation:
To find the periodic payment of an annuity, we can use the formula:
PMT = PV * r / (1 - (1+r)^(-n))
Where PMT is the periodic payment, PV is the present value, r is the interest rate per period, and n is the number of periods.
In this case, the present value is $13,000, the interest rate is 6.3% compounded monthly (which is equivalent to a monthly interest rate of 0.063/12 = 0.00525), and the number of periods is 9 years * 12 months/year = 108 months.
Plugging in these values into the formula, we get:
PMT = 13000 * 0.00525 / (1 - (1+0.00525)^(-108))
Simplifying this expression gives:
PMT ≈ $143.70