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Diane d' Meetcha just closed a $50,000 business loan that is to be repaid in 5...

Diane d' Meetcha just closed a $50,000 business loan that is to be repaid in 5 years with equal, annual, end-of-year payments. The annual interest rate on the loan is 8%. Determine the annual payment amount.

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Answer #1

Equal annual installment = Loan amount/ PVAF(8%,5years)

= $50,000 / 3.9927 = $12,522.82

                           Schedule of repayment

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