Answer:
$18,193.95
Step-by-step explanation:
Interest rate = 6.8% = 0.068
Number of years = 5
Capital Recovery Factor = (A/P ,I, N) = (i*((1+i)^N)) / (((1+i)^N) - 1)
Capital Recovery Factor = (A/P,6.8%,5)
Capital Recovery Factor = (0.068* (1.068^5)) / ((1.068^5) - 1)
Capital Recovery Factor = 0.242586
Annual loan payment = $75,000 * Capital Recovery Factor
Annual loan payment = $75,000 * 0.242586
Annual loan payment = $18,193.95