If you borrow $50,000 at an annual interest rate of 12% for six years, what is the annual payment (prior to maturity) on a fully amortized loan?
A) $0.00
B) $6,000.00
C) $8,333.33
D) $12,161.29
Answer: D
Explanation: D) PMT = = = $12,161.29.
Calculator Solution:
MODE = END
INPUT 6 12.0 -50,000 ? 0
KEY N I/Y PV PMT FV
CPT 12,161.29
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