0% / 12 = 0.0025), and n is the total number of payments (which is 20 x 12 = 240).
Plugging in the values, we get:
180,000 = PMT x [(1 - (1 + 0.0025)^-240) / 0.0025]
Solving for PMT, we get:
PMT = $1,118.61
So the monthly payment is $1,118.61.
b)
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