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

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