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    lilit's Avatar
    lilit Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 27, 2012, 02:55 PM
    Curtis Builders is borrowing $140,000 today for 5 years. The loan is an interest-only
    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?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Mar 27, 2012, 02:58 PM
    So work out the total amount payable and divide by the term of the loan.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    Mar 27, 2012, 07:56 PM
    The equation to calculate interest is:
    Interest = Principal * Rate * Time

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