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suppose a startup for a food truck needs $5,000, five year loan at 9%. Calculate the...

suppose a startup for a food truck needs $5,000, five year loan at 9%. Calculate the annual debt service payment
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Answer #1

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

5000=Annuity[1-(1.09)^-5]/0.09

5000=Annuity*3.88965126

Annuity=5000/3.88965126

=$1285.46(Approx).

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