Prescott Bank offers you a $29,000, 8-year term loan at 10 percent annual interest. What will...

Question

Question

Prescott Bank offers you a $29,000, 8-year term loan at 10 percent annual interest. What will your annual loan payment be?

Multiple Choice

business finance

Answer 1

Answer #1

Annual payment = pmt = Loan amount = [(1-(1/(1+ran)}}/r] 29,000 = [(1-1/1.10^8)}/0.10) $5,435.88

Answer 2

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