The mayor was one of the people that built a new house. He took a loan of 700 000. Following the annuity principal, the loan shall be paid back in 10 years, aka with 10 equally great sums. The rent was 12% per year, and first payment happened 1 year after he took the loan.

Let K be the yearly sum. Write the geometrical series, and calculate K

Calculate how K is divided by rent and loan repayments during the first and last payment.