Assuming a firm takes out a 11-year loan of $50,000 at a stated annual rate of 7% to be repaid in equal annual end-of-year payments, what will the firm need to pay in fixed annual payments?

To determine the periodic fixed payment (FP) on a loan value (LV) over a number of periods (N) at a periodic interest rate (i), the most common and effective approach is to use a financial calculator.

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To calculate the fixed annual payment FP for a loan of 50 000 at a stated an View the full answer