You have just bought a new car for $120,000 and the dealership has offered you a 10-year financing package under which you will make regular monthly payments, followed by a final bullet payment of $60,000 when the loan matures. What is the size of the 119 regular payments, if the interest rate is 7.2% p.a. with monthly compounding?

Group of answer choices

$1063

$1,548

$1,406

None of the other answers is correct

$1069