Loan amortization To buy a new house you must borrow 170000

(Loan amortization?) To buy a new house you must borrow $ 170,000. To do this you take out a $ 170,000?, 25?-year, 12 percent mortgage. Your mortgage? payments, which are made at the end of each year? (one payment each? year), include both principal and 12 percent interest on the declining balance. How large will your annual payments? be?

The amount of your annual payments will be ?$( ) ?(Round to the nearest? cent.)

Solution

PV = 170,000 , fv = 0, rate = 12%, n = 25

use pt function in Excel

annual payments = 21,674.99