What annual repayment will be required to repay the debt

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Reference no: EM131505733

Question: In recent years, the United States has gone from being a "positive savings" nation to a "negative savings" nation (i.e., we spend more money than we earn). Suppose a typical American household spends $10,000 more than it makes and it does this for eight consecutive years. If this debt will be financed at an interest rate of 15% per year, what annual repayment will be required to repay the debt over a 10-year period (repayments will start at EOY 9)?

Reference no: EM131505733

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