Posted by **melony** on Thursday, September 13, 2012 at 5:37pm.

step by step on how to calculate the annual payment on a loan with a million dollar loan, the interest rate is 6.5% for 10 years.

- math -
**Reiny**, Thursday, September 13, 2012 at 6:12pm
You are going to use the formula

Present value = payment (1 - (1+i)^-n )/i

where i is the periodic interest rate as a decimal, and n is the number of periods

for yours:

PV = 1,000,000

payment = ?

i = .065

n = 10

1000000 = payment(1 + 1.065^-10)/.065

1000000 = payment(7.188830223)

payment = $ 139,104.69

## Answer This Question

## Related Questions

- math - ted takes out a student loan to pay for his college tuition this year. ...
- eco - Suppose a person pays $80 of annual interest on a loan that has a 5 ...
- VBA Programming - I'm trying to create a macro that asks for a loan between 1 ...
- math - interest rates - Car loan: 5-yr annual-payment loan with interest rate of...
- math - Five (5) years ago, you bought a house for $171,000, with a down payment ...
- algebra - Five (5) years ago, you bought a house for $171,000, with a down ...
- Maths - Amortization of a $1000 Loan Interest Monthly payment rate 15yr 20yr ...
- financial project - Five (5) years ago, you bought a house for $171,000, with a ...
- math - Assignment 2: Financial Project Due Week 7 and worth 55 points Five (5) ...
- Finance - you have contacted a number of dearlerships to determine the best ...

More Related Questions