loan's annual installments can be calculated using the amortization formula for equal payments. The amortisation formula determines the monthly payments needed to repay the debt over time at a set interest rate. Formula for amortized loan annual payment (PMT): PMT = P * (r * (1 + r)^n) / (1 + r^n-1) Where: Annual PMT payment, P is the initial loan amount, r is the periodic interest rate (annual rate divided by periods per year), and n is the total number of payments (years multiplied by periods per year). We'll compute the annual payments for each scenario using a 7% interest rate and a five, ten, or twenty-year amortizat