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