Determine the amount of each annual payment

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Reference no: EM13878402

On January 1, 2016, you borrow $100,000, at an effective annual interest of 8%. You intend to pay off the loan via annual level amortization payments – however, your first payment will not occur until December 31, 2019. You will make a total of 20 level annual payments, with the last payment being made at December 31, 2038. Prior to the first payment, the loan accumulates charged interest. Determine the amount of each annual payment.

Reference no: EM13878402

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