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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 -

    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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