#24. A bank offers a home buyer a 30-year loan at 8% per year. If the...

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#24. A bank offers a home buyer a 30-year loan at 8% per year. If the home buyer borrows $ 130000 from the bank, how much must be repaid every year?

Answer 1

Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

130,000=Annuity[1-(1.08)^-30]/0.08

130,000=Annuity*11.2577833

Annuity=130,000/11.2577833

=$11547.57(Approx).

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Answer 2

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#24. A bank offers a home buyer a 30​-year loan at 8​% per year. If the...