The monthly payment of Angelica on the loan after she graduates in 4 years is $97.22.
Firstly, we calculate the future value (FV) of the loan in 4 years as follows:
FV in 4 years = Loan amount * (1 + Interest rate)^4 = $16,000 * (1 + 0.056)^4 = $19,896.45
Secondly, the monthly payment is calculated using the formula for calculating the future value of an ordinary annuity as follows:
M = FV in 4 years / ((((1 + r)^n) – 1) / r) ....................... (1)
Where:
M = Monthly payment = ?
r = monthly interest rate = 0.056 / 12 = 0.00466666666666667
n = number of months = 12 years * 12 months = 144
Substituting all the relevant values into equation (1), we have:
M = $19,896.45 / ((((1 + 0.00466666666666667)^144) – 1) / 0.00466666666666667)
M = $97.22
Learn more about future value here: https://brainly.com/question/2472793.
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