A client has taken out a $300,000 loan,which must be repaid with equal annual payments for the next 30 years.If the interest rate on the loan is 4.5%,what are the annual payments?

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The annual payment can be calculated using the formula for an annuity, which is: Payment = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the principal amount ($300,000), r is the annual interest rate (4.5% or 0.045), and n is the number of payments (30). Plugging in these values gives an annual payment of approximately $18,417.46.

A Client Has Taken Out a $300,000 Loan,which Must Be