Answer:
Monthly installment =$840.791
Explanation:
<em>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.
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The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; 27,000 - (15%× 27,000) = 22,950
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
r- 19%/12 = 1.58% = 0.0158, n = 3× 12 = 36 months
Annuity factor = (1- 1.0158^(-36))/0.0158 = 27.295
Monthly installment = 22,950
/27.295
$840.791
