Question

If a bank amortized a loan of 11600000 at 6.9% for 5 years what will the annual payment on the loan be?

Answer 1

The final answer is $71,387,708,456.80

First, you plug the variables into the equation.


`11600000(1 + 6.9) ^(5)`
The answer to that is 356,938,542,284. This is the total amount that is due at the end of the five years.

You then divide that by 5 to get the amount paid each year, thus leaving you with $71,387,708,456.80