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Bank of America offers you a $120,000, 6-year term loan at 8 percent annual interest. What will your annual loan payment...

Bank of America offers you a $120,000, 6-year term loan at 8 percent annual interest. What will your annual loan payment be?

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Answer #1

Ans $ 19324.31

P = Regular Payments
PV = Loan Amount
r = rate of interest
n = no of periods
P = r (PV)
1 - (1 + r )-n
P = (6%)*120000
1 - (1 / (1 + 6%)^8))
P = 7200
0.372587629
P = 19324.31
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