1) Let's calculate the monthly payment, considering the following about this:
[tex]\begin{gathered} M=\frac{\mleft[P\cdot(1+\frac{r}{n})\mright]^{nx}}{nx} \\ \\ M=\frac{\mleft[195,000\cdot(1+\frac{0.066}{12})^{3}^{6}^{0}\mright]}{360} \\ M=\$3901.92 \end{gathered}[/tex]Note that we call the Principal, i.e. $195,000 an interest rate of 6.6% (or 0.06%) note that there is no mention of any down payment. And the x variable stands for the duration of the loan. Also, n stands for the number of months within a year.
2) We need to do a little adjustment so that the answer might fit into the options, rewriting the fraction as a decimal number we have
2) Thus, the answer is:
[tex]M=\frac{\lbrack195,000\cdot(1+0.0055)^{3}^{6}^{0}\rbrack}{360}[/tex]