Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
51000=Annuity[1-(1.085)^-5]/0.085
51000=Annuity*3.94064208
Annuity=51000/3.94064208
=$12942.05(Approx).
Dinero Bank offers you a five-year loan for $51,000 at an annual interest rate of 8.5...
Prescott Bank offers you a five-year loan for $66,000 at an annual interest rate of 7.5 percent. What will your annual loan payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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