Question

Chris Taylor is settling a $19,270 loan due today by making 6 equal annual payments of...

Chris Taylor is settling a $19,270 loan due today by making 6 equal annual payments of $4,424.53.

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What payments must Chris Taylor make to settle the loan at an interest rate of 10%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Payments

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Homework Answers

Answer #1

Requirement:- What payments must Chris Taylor make to settle the loan at an interest rate of 10%, but with the 6 payments beginning on the day the loan is signed?

Solution:-

Payments $4,022.30

Calculation Of annual Payment

Annual Payment = PMT (Rate, nper, PV,FV, type)

Annual payment = PMT (10%,6, -19,270,0,1)

Annual Payment = $4,022.30

Chris Taylor make a payment of $4,022.30 to settle the loan at an interest rate of 10%.

Note:- Please use this formula in excel.

I Hope It was helpful.

Thank you!!

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