Question

SS HO WA w D. If you buy a warehouse for $250,000 and the terms are 20 percent down, the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments? Ans: PMT = $24,828.73, Hint: make a timeline first w TRANSA U ANNAR BERS HERR . SA wa lat SLR BERGE Whe AS vvvvvvvvvvvv SARRERA NUE . SOS he

Answer 1

Loan Amount (PV) = $250,000 x 80% = (-$200,000)

No of annual repayments (N) = 30

Interest Rate (I) = 12%p.a.

Annual Payment (PMT) = ?

Using Financial Calculator or PMT function in excel,

Annual Payment (PMT) = 24,828.73

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