Answer
The monthly payments necessary on this loan are equal to \$3,240.33
Work Step by Step
Loan calculations are identical to annuity calculations, so:
The formula for the payment value for a loan is:
$PMT = PV\frac{i}{1-(1+i)^{-n}}$
Where:
$PV= 15,000$
** The withdrawals are made semmiannualy (2 times per year), so m = 2.
$i=r/m=\frac{0.0525}{2} = 0.02625$
$n=mt=2 \times 2.5=5$
Therefore:
$PMT = (15,000)\frac{0.02625}{1-(1+0.02625)^{-60}} = 3,240.33$
