https://file.aiquickdraw.com/mathbot/file/1727669098180372jch6c.jpg

The expression provided in the image represents a standard annuity formula used to calculate the fixed periodic payment required to pay off a loan. The formula can be interpreted as follows:

\[
P = 80,000,000 \times \left[\frac{0.0125}{1 - (1 + 0.0125)^{-60}}\right]
\]

Where:
- \( P \) is the loan payment.
- 80,000,000 represents the loan principal.
- 0.0125 is the monthly interest rate.
- 60 is the number of periods (in months, which could mean a 5-year loan).

### Steps to solve:
1. First, calculate the expression inside the parentheses.
2. Then divide \(0.0125\) by that value.
3. Multiply the result by \(80,000,000\).

Let me compute that for you.The fixed monthly payment required to pay off the loan is approximately **1,903,194.41**.

Would you like further details or clarification on any step of the calculation?

Here are 5 related questions to explore:
1. How does the interest rate affect the monthly payment amount?
2. What if the loan term was 10 years instead of 5 years?
3. How would this formula change if the interest rate was compounded quarterly?
4. What happens if the loan amount changes to a different principal value?
5. How can you calculate the total amount paid over the life of the loan?

**Tip:** To reduce monthly payments, extending the loan period will lower the monthly amount but increase the total interest paid over time.

What is the monthly loan payment for a principal of 80,000,000 with an interest rate of 1.25% over 60 months?

This problem demonstrates how to calculate fixed monthly loan payments using the annuity formula. Given a loan principal of 80,000,000 with an interest rate of 1.25% over 60 months, this detailed step-by-step solution explains how to compute the payment amount.

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