Master Meter is planning on constructing a new $20 million facility. The company plans to pay 20% of the cost in cash and finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% compounded monthly?

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The correct answer is A.The monthly loan payment can be calculated using the following formula:PMT = (PV * r) / (1 - (1 + r)^-n)where:PMT is the monthly loan paymentPV is the present value of the loanr is the monthly interest raten is the number of monthsIn this case, the present value of the loan is $20 million * 0.8 = $16 million, the monthly interest rate is 9% / 12 = 0.75%, and the number of months is 30 years * 12 months/year = 360 months.Plugging these values into the formula, we get:PMT = (16,000,000 * 0.0075) / (1 - (1 + 0.0075)^-360)PMT = $128,740Therefore, the monthly loan payment will be $128,740.

Master Meter Is Planning on Constructing a New $20 Million