Question 1173024
Here's how to calculate Chuck's monthly payment:

**1. Calculate the Down Payment:**

* Down payment = 15% of $155,000 = $23,250

**2. Calculate the Loan Amount:**

* Loan amount = $155,000 - $23,250 = $131,750

**3. Calculate the Monthly Interest Rate:**

* Monthly interest rate = Annual interest rate / 12
* Monthly interest rate = 7.45% / 12 = 0.0745 / 12 = 0.00620833 (approximately)

**4. Calculate the Monthly Payment:**

* We'll use the loan payment formula:
    * M = P [ i(1 + i)^n ] / [ (1 + i)^n  -  1]
    * Where:
        * M = Monthly payment
        * P = Principal loan amount ($131,750)
        * i = Monthly interest rate (0.00620833)
        * n = Total number of payments (42 months)

* M = $131,750 [ 0.00620833(1 + 0.00620833)^42 ] / [ (1 + 0.00620833)^42  -  1]
* M = $131,750 [ 0.00620833(1.298715) ] / [ 1.298715  -  1]
* M = $131,750 [ 0.0080628 ] / [ 0.298715 ]
* M = $131,750 * 0.026991
* M = $3556.34 (approximately)

**Therefore, Chuck's monthly payment would be approximately $3,573.30**