Explore BrainMass

Explore BrainMass

    Determinig annual installments

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Problems:

    a. If you borrow $1,000 and agree to repay the loan in five equal annual payments at an interest rate of 12 percent, what will your payment be?

    b. What if you make the first payment on the loan immediately instead of at the end of the first year?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:05 pm ad1c9bdddf
    https://brainmass.com/business/annuity/determining-annual-installments-214800

    Solution Preview

    a. If you borrow $1,000 and agree to repay the loan in five equal annual payments at an interest rate of 12 percent, what will your payment be?

    Present Value of loan = $1000
    Rate of interest per period= 12%
    n= number of ...

    Solution Summary

    The solution describes the steps for determining annual installments for a loan.

    $2.19

    ADVERTISEMENT