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What is the appropriate amount of equal annual payments

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Question - You owe $200,000 on a mortgage loan. You wish to repay the loan with 10 equal payments, one at the end of each year for the next 10 years, and a separate final $80,000 payment at the end of 11 years. What is the appropriate amount of each of the 10 equal annual payments? The interest rate is 8% compounded annually. Hint: The present value of the 10 equal payments for the first ten years plus the present value of the $80,000 at the end of the 11 year must equal the $200,000 amount of the mortgage loan.

$37,413

$28,327

$24,693

$16,751

$19,222

Reference no: EM131594432

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