IN THE FORMULA BELOW, WHAT DOES THIS (0.777/12) REPRESENT AND HOW DID YOU GET IT

Question

IN THE FORMULA BELOW, WHAT DOES THIS (0.777/12) REPRESENT AND HOW DID YOU GET IT? WHY NOT USE THE 7.75%? I need to know the formula used to find the answer of $9036.25 to the following question. Thank you The McDonald Group purchased a piece of property for $1.2 million. It paid a down-payment of 20% in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual percentage rate of 7.75% compounded monthly. What is the amount of each mortgage payment? Amount finance = 1 200 000 x(1-.2)=960 000 960 000 = c x [ 1-(1/1+0.0775/12)^15 x12 / 0.777/12 ] 960 000 = c x 106.238 C=9036.25 this is the solution

Explanation / Answer

C=9036.25 is correct one because Amount finance = 1 200 000 x(1-.2)=960 000 960 000 = c x [ 1-(1/1+0.0775/12)^15 x12 / 0.777/12 ] 960 000 = c x 106.238 C=9036.25

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