You just took out a $12,000 loan for your small business.The loan has a four year term and repayment is in the form of four equal end-of-year payments.The interest rate on the loan is 11.5%.What are your annual loan payments?
A) $3,909.29
B) $3,287.78
C) $3,144.83
D) $3,246.84
E) $3,867.92

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1f_d028_a768_813d83d8bbcf_TB2902_11 PMT = PV / 11ea7fdb_fc1f_d029_a768_a9abd94b22db_TB2902_11 PMT = 12,000 / 11ea7fdb_fc1f_d02a_a768_6b7fa80a0414_TB2902_11 = $3,909.29
Using a financial calculator:
N = 4, I = 11.5, PV = -12,000, FV = 0, cpt PMT = $3,909.29

You Just Took Out a $12,000 Loan for Your Small