Big Brothers Inc. borrows $244,621 from the bank at 19.9 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 3 years. How much will each annual payment be? Round to two decimal places.

Big Brothers Inc. borrows $244,621 from the bank at 19.9 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 3 years. How much will each annual payment be? Round to two decimal places.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Halep Inc. borrowed $34,059 from Davis Bank and signed a 2-year note payable stating the interest rate was 8% compounded annually. Using the Present Value of an Annuity of 1 TABLE4, calculate the factor. Next, determine the annual payment amount. Then, determine the interest portion of the payment for year 1. Finally, determine the principal portion of the payment for year 1. Round to the nearest penny, two decimal places.
Meriton Ltd borrows $ 100,000 at an interest rate of 11.5% per annum, repayable by equal monthly instalments over 20 years. Calculate the principal and interest components of the first and last repayments. Can you please solve step by step with the formula
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