The payment for a loan based on APR is given by:
[tex]PMT=A(\frac{\frac{r}{n}}{1-(1+\frac{r}{n})^{-nt}})[/tex]Where:
PMT = Payment
A = loan amount
r = annual interest rate
n = number of payments made per year
t = number of years
From the given, we know that
A = 325
r = 0.069
n = 12
t = 1
Substitute the given to the formula
[tex]PMT=325(\frac{\frac{0.069}{12}}{1-(1+\frac{0.069}{12})^{-12(1)}})[/tex][tex]PMT=28.1062\approx28.11[/tex]Now, since we are asked to r
