Question
Suppose you borrowed $50,000 at a rate of 4.5% and must repay it in 4 equal installments at the end of each of the next
Suppose you borrowed $50,000 at a rate of 4.5% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your annual payment be?
I do not think I am doing this correctly! I am taking
50,000 * 4.5% = 2,250
2,250 *4 = 9,000
50,000 + 9,000 = 59,000
59,000 / 4 = 14,750
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
