# Assuming a firm takes out a 11-year loan of $50,000 at a stated annual rate of 7% to be repaid

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## Question:

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.

**Related Book For**

## Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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