Suppose Charles receives a $$28,000\mathrm{.}00$ loan to be repaid in equal installments at the end of each of the next $3$ years. The interest rate is $3\%$ compounded annually.

Use the formula for the present value of an ordinary annuity to find this payment amount:

PVANPVAN$==$PMT$(11(1+$I$)$N$)$IPMT$111+$INIPMTPMT$==$PVAN$$I$(11(1+$I$)$N$)$PVAN$$I$111+$IN

In this case, PVANPVAN$$equals$$9,898\mathrm{.}85,$ I equals$3\%,$ and N equals$3.$

Using the formula for the present value of an ordinary annuity, the annual payment amount for this loan is$.$