Answer
The monthly payments for this loan is equal to $3,346.56
Work Step by Step
1. Write the formula for loan payment:
$PMT = PV\frac{i}{1 - (1 +i)^{-n}}$
2. Identify the values:
$PV = 250,000$
- Monthly payment: m = 12
- 6.5% : r= 0.065
- 8 years : t = 8
i$=r/m=\frac{0.065}{12}$
$n=mt=12 \times 8 = 96$
3. Substitute the values and calcule the payment:
$PMT = (250,000)\frac{\frac{0.065}{12}}{1 - (1 + \frac{0.065}{12})^{-96}} = 3,346.56$