The Annual loan amount payment will be $12,427.42.
This is a form of annuity that involves payment of equal amounts monthly for 5 years. These amount are made up of part of the interest and part of the principal.
Using the annuity formula:
P= Y{1-(1/[1+r]^n)/r}
Where,
P = Initial loan amount
Y = Annual loan amount payment
r= interest rate
n= number of years
Now, let's solve the question, using above formula,
64,000= Y{1-(1/[1+0.0675]^5)/0.068}
Y= 64,000/5.14990
Y= $12,427.42
Hence, the Annual loan amount payment will be $12,427.42.
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