If $50,000 is borrowed at an annual interest rate of 8.9% for nine years, determine the annual payments made at the start of each year.
Multiple Choice
$7,527
$7,627
$7,827
$7,927
$7,727
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2ND + PMT, then 2ND + ENTER (This will set the calculator to the beginning mode as payment is made at the beginning of each year)
N = 9 (The Borrowing is for 9 years)
PV = -50,000 (This is borrowed now)
FV = 0 (At the end of 9 years, the borrowing should be zero)
I/Y = 8.9%(The annual interest rate is 8.9%)
CPT + PMT = 7,627.24
So the correct option is "B"
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