Answer:
Required monthly payments = $352.556
Step-by-step explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; 10,800
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
r- 10.8%/12 = 0.9 % = 0.009, n = 3 × 12 = 36
Annuity factor = ( 1- (1+0.009)^(-36))/0.009 =30.6334
Monthly installment = Loan amount /annuity factor
= 10,800/30.6334= 352.556
Required monthly payments = $352.556