To calculate the monthly payment needed to pay off a loan, we can use the formula for the monthly payment of an amortizing loan:
\[
M = P \frac{r(1 + r)^n}{(1 + r)^n - 1}
\]
Where:
- \(M\) = monthly payment
- \(P\) = loan principal (amount borrowed)
- \(r\) = monthly interest rate (annual interest rate divided by 12)
- \(n\) = total number of payments (loan term in months)
Given:
- \(P = 20,000\) GHS
- Annual interest rate = 6% => Monthly


