Question

perry mazza wants to borrow $40,000 from the bank. the interest rate is 7% and the term is for 5 years. what is the monthly payment amount? $450 $450 $600 $600 $1,800 $1,800 $900 $900

Answer 1

Perry Mazza has to pay $9,755.63 a year for a $40,000 loan with a 7% interest rate for a period of five years.

How are the annual payments/interest rate determined?

Using the online financial calculator shown below, the annual instalments can be calculated.

The outcomes indicate that Perry Mazza will pay a total of $8,778.15 in interest.

Calculations and data: N (number of periods) = 5 years

Interest annually equals 7%.

$40,000. PV (Present Value)

Future Value (FV) = $0

Results:

PMT = $9,755.63

$9,755.63 multiplied by 5 is $48,778.15 for all recurring payments.

$8,778.15 in interest overall

Perry Mazza's annual payment for a $40,000 loan with a 7% interest rate and a five-year term is therefore $9,755.63.

To know more about interest payment visit:

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