1. **Problem Statement:** Alisha borrowed 25000 with 4.8% annual interest compounded monthly, to be paid in 24 monthly payments. 2. **Formula for monthly payment (PMT) on a loan:** $$PMT = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$ where $P$ is principal, $r$ is monthly interest rate, $n$ is number of payments. 3. **Calculate monthly interest rate:** Annual rate = 4.8% = 0.048 Monthly rate $r = \frac{0.048}{12} = 0.004$ 4. **Calculate monthly payment:** $$PMT = 25000 \times \frac{0.004(1+0.004)^{24}}{(1+0.004)^{24} - 1}$$ Calculate $(1+0.004)^{24} = 1.004^{24} \approx 1.100486$ So, $$PMT = 25000 \times \frac{0.004 \times 1.100486}{1.100486 - 1} = 25000 \times \frac{0.004401944}{0.100486} = 25000 \times 0.04379 = 1094.75$$ 5. **Total payment and interest:** Total paid = $1094.75 \times 24 = 26274$ Interest charged = $26274 - 25000 = 1274$ 6. **Part b: If first 5 payments missed, find amount due on 6th payment to settle arrears.** Missed payments accumulate interest monthly. Amount owed after 5 months of missed payments: $$A = PMT \times \frac{(1+r)^5 - 1}{r}$$ Calculate $(1+0.004)^5 = 1.0202$ So, $$A = 1094.75 \times \frac{1.0202 - 1}{0.004} = 1094.75 \times 5.05 = 5529.99$$ 7. **Add 6th payment to settle arrears:** 6th payment = regular payment + arrears = $1094.75 + 5529.99 = 6624.74$ **Final answers:** - Monthly payment = $1094.75$ - Total interest charged = $1274$ - 6th payment to settle arrears = $6624.74$