Question: Serenity Florist borrows $$240,000$ ?to be paid off in five years. The loan payments are annual with the first payment due in one year, and annual interest rate is at $6\%.$ ?What i amount of each payment?

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Present Value of $1 Present Value of Ordinary Annuity of $1 Period 3% 4 4% 6% 0.88849 0.85480 0.79209 0.73503 8% 3% 6% 3% 3.71710 6 0.83748 0.79031 0.70496 0.63017 5.41719 8 0.78941 0.73069 | 0.62741 0.54027 7.01969 10 0.74409 0.67556 0.55839 0.46319 8.53020 12 16 20 0.70138 0.62460 0.49697 0.39711 9.95400 0.62317 0.53391 0.39365 0.29189 12.56110 0.55368 0.45639 0.31180 021455 14.87747 4% 8% 8% 3.62990 3.46511 3.31213 3.82861 3.77509 3.67301 3.57710 5.24214 4.91732 4.62288 4.62288 5.57971 5.45182 5.21236 4.99271 6.73274 6.20979 5.74664 7.23028 8.11090 7.36009 6.71008 8.78611 8.43533 7.80169 7.24689 9.38507 8.38384 7.53608 10.25262 9.76048 8.88687 8.13986 11.65230 10.10590 8.85137 12.93794 12.11839 10.71225 Present Value of Annuity Due of $1 4% 6% 7.00205 6.58238 6.20637 9.55948 13.59033 11 16002 001015 15.22280 1112201 12 15912 10.40260 Present Value of $1 Present Value of Ordinary Annuity of $1 Period 3% 4 4% 6% 0.88849 0.85480 0.79209 0.73503 8% 3% 6% 3% 3.71710 6 0.83748 0.79031 0.70496 0.63017 5.41719 8 0.78941 0.73069 | 0.62741 0.54027 7.01969 10 0.74409 0.67556 0.55839 0.46319 8.53020 12 16 20 0.70138 0.62460 0.49697 0.39711 9.95400 0.62317 0.53391 0.39365 0.29189 12.56110 0.55368 0.45639 0.31180 021455 14.87747 4% 8% 8% 3.62990 3.46511 3.31213 3.82861 3.77509 3.67301 3.57710 5.24214 4.91732 4.62288 4.62288 5.57971 5.45182 5.21236 4.99271 6.73274 6.20979 5.74664 7.23028 8.11090 7.36009 6.71008 8.78611 8.43533 7.80169 7.24689 9.38507 8.38384 7.53608 10.25262 9.76048 8.88687 8.13986 11.65230 10.10590 8.85137 12.93794 12.11839 10.71225 Present Value of Annuity Due of $1 4% 6% 7.00205 6.58238 6.20637 9.55948 13.59033 11 16002 001015 15.22280 1112201 12 15912 10.40260

Answer rating: 100% (QA)

To calculate the amount of each payment we can use the formula for the periodic payment on an am... View the full answer