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Annual Payment

A $150,000 loan from First State Bank of Poplar Bluff carries an annual percentage rate of 12%. It will be paid off through equal year-end installments, including both principal and interest, over a 20-year period. What is the annual payment required?

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The annual payment would be such that the present value of payments would equal the loan amount. The ...

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The solution explains how to calculate the annual payments needed to repay the loan