Answer: $309.32
Explanation:
The amount that you are to find is an annuity figure because it will be a constant payment. The present value of this annuity is $16,000.
As it is pad monthly, convert time and rate to monthly figures:
5 years = 5 * 12 = 60 months
6% = 6/12 = 0.5%
Present value of annuity = Annuity * ( 1 - (1 + r) ^ -n) / r
16,000 = Annuity * ( 1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
16,000 = Annuity * 51.72556
Annuity = 16,000 / 51.72556
= $309.32
