Prescott Bank offers you a five-year loan for $53,000 at an annual interest rate of 7.75 percent. What will your annual loan payment be

Question

asked Mar 7, 2021 9.5k views

1 Answer

Martin Peter · Answer 1 · 2021-03-12T20:16:56+0000

Answer:

$13,186.84

Step-by-step explanation:

Use the Time Value of Money Techniques to Solve the Problem

Pv = $53,000

N = 5

i = 7.75 %

Fv = $ 0

P/yr = 1

Pmt = ?

Using a Financial Calculator, the annual loan payment (Pmt) is $13,186.84.