Question

Loan payment Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Principal Interest rate Term of loan (years) $23,000 16% 12 The amount of the equal, annual, end-of-year payment, CF, is $ (Round to the nearest cent.)

Answer 1

PV=$23000

r=16%

n=12

PV=A*(1-(1+r)^-n)/r

Or, 23000=A*(1-(1+16%)^-12)/16%

Or, 23000=A*(1-1.16^-12)/0.16

Or, 23000=A*(1-0.1685)/0.16

Or, A= 23000*0.16/0.8315

Or, A=$4425.54