Big League Sports borrowed $883,212,and must make annual year-end payments of $120,000
each.If Big League's interest rate is 6%,how many years will it take Big League Sports to pay off the
loan?

Question

Quizplus · Accepted Answer

Present Value of an Annuity = Annuity * Interest Factor
$883,212 = $120,000 * Interest Factor; Interest Factor = 7.3601
7.3601 is the interest factor on the Present Value of an Annuity table; i = 6%; n =10

Big League Sports Borrowed $883,212,and Must Make Annual Year-End Payments