Answer:
£1,945.41
Explanation:
we can use the present value of an annuity formula to solve this question:
present value of an annuity = monthly payment x present value annuity factor
monthly payment = present value of an annuity / present value annuity factor
- present value of an annuity = 350,000
- present value annuity factor, 0.375% (4.5%/12), 300 periods (25 x 12) = 179.9107
monthly payment = 350,000 / 179.9107 = 1,945.41
