Betsy is ready to receive $50,000 for a small business loan later today. She will re-pay the loan by making four annual
Posted: Fri Jul 01, 2022 7:46 am
Betsy is ready to receive $50,000 for a small business loanlater today. She will re-pay the loan by making four annualpayments on the same date, starting one year from today. She willpay back equal amounts of principal each year. (In other words, theyearly principal reduction is constant.) How much will each paymentbe if her effective annual interest rate is 8%?