Question

2.76 A manufacturing company borrows $100,000 with a promise to repay the loan with equal annual payments over a 5-year period. At an interest rate of 12% per year, the annual payment will be closest to (a) $23,620 (b) $27,740 (c) $29,700 (d) $31,800

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Answer #1

OPTION B IS CORRECT

Principal $100,000.00
Rate 12.00%
Period 5
Annual Payment = PMT(12%,5,-100000) $27,740.97
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