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. Suppose Abdulrahman Plan to borrow a loan of SAR 120,000 now and will repay it...

. Suppose Abdulrahman Plan to borrow a loan of SAR 120,000 now and will repay it in 10 equal annual installments. If the bank charges 10% interest, what would be the amount of the annual installment?

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Answer #1

rate positively ..

We have to use financial calculator to solve this
put in calculator -
FV 0
PV -120,000
I 10%
N 10
Compute PMT $19,529.45
Ans = $19,529.45
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