Total cost = $35,000
Down payment = 20% of $35,000 = $7,000
P = 35,000 - $7,000 = $28,000, the amount of the loan.
r = 8.75% = 0.0875, the interest rate
n = 12, compoundings per year
t = 12, the nmber of years
Note that
1 + r/n = 1.007292
nt = 144
The value of the loan is
A = P*1.007292¹⁴⁴ = $79,709.99
Monthly payment = $79,709.99/144 = $553.54
Answer: $553.54
