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I borrowed $10,000 for 7 years with annual payments

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I borrowed $10,000 for 7 years with annual payments. If I borrow the money at 15%, what will my annual payment be?

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Annual loan payment

Loan amount (P) = $10,000

Annual interest rate (r) = 15%

Loan period (n) = 7 Years

The Annual Loan Payment = [P x {r (1+r) ⁿ}] / (1+r) ⁿ – 1

= [$10,000 x {0.15 x (1 + 0.15)⁷}] / [(1 + 0.15)⁷ – 1]

= [$10,000 x {0.15 x 2.66001988}] / [2.66001988 – 1]

= [$10,000 x 0.399002982] / 1.66001988

= $3,990.03 / 1.66001988

= $2,403.60 per year

Therefore, the annual loan payment will be $2,403.60

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