Question
(1) 2. Mrs. Smith has just borrowed $35,000 from a local bank and the loan must...

(1) 2. Mrs. Smith has just borrowed $35,000 from a local bank and the loan must be paid back through 6 equal end-of-year payments over the next 6 years. If the annual intereat rate is 8%, what is the annual payment? nabr. Factor D
Answers
This can be calculated by the formula: Annual Payment=P. r. (1+r)" I ((1+8"-1) where is the principal amor borrowed. Chr is rate of interest nis time penod: - 3500 O X 0.08(1 + 0.0816 ((1+0.08)81) = 75 71.038518
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