You take out a twenty-year amortized loan of $100,000 with a 5% annual interest rate. What are the annual payments?
A) $ 8,024
B) $ 8,718
C) $ 4,762
D) $37,689

Question

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The annual payment for a 20-year amortized loan of $100,000 at a 5% interest rate can be calculated using the formula for an amortizing loan. The correct annual payment is approximately $8,024.

You Take Out a Twenty-Year Amortized Loan of $100,000 with a 5