Answer:
$1696.51
Explanation:
70% of $130 000 = $91 000; number of payments = 12 * 5 years = 60 months ; 4.5% is converted to 4.5/1200 to accommodate the monthly repayments being calculated.
Loan monthly repayment
= principal [ interest (1+ interest)^ number of payments] / [(1+interest)^number of payments - 1]
$91 000 [(4.5/1200* (1+ 4.5/1200)^ 60)] / [((1+4.5/1200)^60) - 1]
= 1696.514751
= 1696.51
