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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 ...

Solution Summary

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

$2.19