What must a borrower pay each year on an $18,000,000 loan at 10% annual interest if...
What must a borrower pay each year on an $18,000,000 loan at 10% annual interest if
the loan is to be amortized over 25 years?
Homework Answers
Ans $ 1,983,025.30
| P = | Regular Payments |
| PV = | Loan Amount |
| r = | rate of interest |
| n = | no of periods |
| P = | r (PV) |
| 1 - (1 + r )^-n | |
| P = | 10%*18000000 |
| 1 - (1 / (1 + 10%)^25)) | |
| P = | 1800000 |
| 0.907704002 | |
| P = | 1983025.30 |
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