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Calculate the factor and divide the factor

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A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in five equal $ payments (annually) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan annually, the % is divided by 1 and the exponent (5 years) is multiplied by 1). Also since it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000.

Reference no: EM132694810

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