Big Brothers Inc borrows 424012 from the bank at 1452 percen

Big Brothers, Inc. borrows $424,012 from the bank at 14.52 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 7 years. How much will each annual payment be? Round the answer to two decimal places.

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

424012=Annuity[1-(1.1452)^-7]/0.1452

424012=Annuity*4.221028627

Annuity=424012/4.221028627

which is equal to

=$100,452.29(Approx).

Big Brothers, Inc. borrows $424,012 from the bank at 14.52 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal

Big Brothers Inc borrows 424012 from the bank at 1452 percen

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