Intro You borrowed $100,000 at an interest rate of 2.8%, with constant annual payments of both principal and interest over 15 years. Q 1 Attempt 1/5 for 10 pts. What is your annual payment? Correct The cash flows are constant and make up an annuity. We can thus use the annuity formula, solved for PMT. PVAN=PMT[I11/(1+I)N]PMT=11/(1+I)NPVANI=11/(1+0.028)15100,0000.028=8,256 Using a financial calculator: Using Excel (do not enter the thousands separators): -PMT(rate, nperpin) PMT(0.028, 1E(-100,000) =8,256 Using Excel (do not enter the thousands separators): =PMT(rate, nper, pv) =PMT(0.028,15,100,000)=8,256 What is the outstanding balance after 8 years