Curtis Builders is borrowing $140,000 today for 5 years. The loan is an interest-only loan with an APR of 9.5 percent. Payments are to be made annually. What is the amount of the first annual payment?

So work out the total amount payable and divide by the term of the loan.

The equation to calculate interest is:
Interest = Principal * Rate * Time

Now just plug-in your numbers and solve for the interest amount.