Kim Barth decides to start a small restaurant near a busy shopping mall. She applies for a

Question:

Kim Barth decides to start a small restaurant near a busy shopping mall. She applies for a loan of $150,000, to be repaid in five annual installments, with each installment due at the end of each of the next five years. The bank charges an interest rate of 10%, compounded annually.

Required:
Compute the annual installment amount. Use the tables at the end of the book.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...