Intermediate term loan for 1,000,000 to be paid off in equal installments at the end of each of the next 5 years. The interest rate is 14%, what is the annual payment.© BrainMass Inc. brainmass.com March 21, 2019, 1:51 pm ad1c9bdddf
We have to use annuity formula to solve the problem.
PVA = W x 1 - 1 where PVA is the present value of loan
This solution is comprised of a detailed explanation to answer what is the annual payment.